Free Startup Tool

How many months until your startup runs out of cash?

The funding environment has permanently changed. AI captured nearly 50% of all venture funding in 2025, the median gap between rounds stretched to almost two years, and only 0.05% of startups successfully raise VC. The founders who survive know exactly how much runway they have and they check it constantly.

Financials

Company Balance

$

Monthly Revenue (MRR)

$

MoM Growth

%

Monthly Expenses

Office / Rent

$/mo

Ad Spend

$/mo

Software & Tools

$/mo

Team

Software Engineer

$/yr

Designer

$/yr

Product Manager

$/yr

Sales Rep

$/yr

Runway Remaining

12 months

Funds depleted

Runway Over Time

Net Monthly Burn

Expenses by Category

No expenses to display

What These Numbers Tell You

Burn Rate

How fast you're spending

Burn rate is how fast you're spending cash each month. There are two versions:

Gross burn = total monthly expenses (everything going out the door)
Net burn = expenses minus revenue (your actual cash loss)

If you're pre-revenue, they're the same. If you're making money, net burn is what matters for runway.

Runway

Time until cash runs out

Runway is how many months you can survive at your current burn rate.

A startup with $500K in the bank burning $50K/month has 10 months of runway. Simple math, existential implications.

What "Good" Burn Rate Looks Like

The metric investors actually care about: Burn multiple (Net Burn ÷ Net New ARR). It shows how efficiently you're turning spending into revenue.

Below 1x

Excellent

AI-native companies are hitting this

1-1.5x

Great

The new target for Series A

1.5-2x

Acceptable

Fine for now, optimize soon

Above 2x

Trouble

You'll struggle to raise

The bar has shifted. Midjourney generates $200M annually with 11 employees. That's the efficiency standard investors now measure you against.

Warning Signs You're Burning Too Fast

Watch for these red flags that indicate your burn rate may be unsustainable.

Burn multiple above 2x

Spending $2+ for every $1 of new revenue

Runway under 12 months

Without active fundraising in progress

Gross burn growing faster than revenue

Your expenses are outpacing your growth

High customer concentration

If one customer churns, you're in trouble

Stop Burning Cash on Payroll Compliance

Multi-state payroll is a hidden money pit for distributed startups. Tax registrations, filings, compliance updates across every state where you have employees. It adds up fast and pulls founders away from the work that actually matters.

Try Warp

Complete Guide on Burn Rate

Startup Burn Rate Explained: Benchmarks, Runway, and What Investors Expect in 2026

Breakdown of burn rate fundamentals, 2026 runway expectations by stage, the burn multiple metric, and warning signs your startup is spending too fast.

Nicole Sievers · Jan 21, 2026

Read the full guide

Questions?

This calculator is for informational purposes only. Consult with a financial advisor for guidance specific to your situation.