Question 1

What is a 'Good' Runway?

Accepted Answer

Most investors recommend startups maintain at least 12 to 18 months of runway to provide enough time to reach the next major milestone or raise subsequent funding.

Question 2

Does Burn Rate include non-cash expenses?

Accepted Answer

No, when calculating runway, focus strictly on cash outflows. Exclude non-cash expenses like depreciation or amortization as they do not affect your actual bank balance.

Question 3

How often should I use this calculator?

Accepted Answer

You should update your runway calculation at least once a month during your financial closing process, or immediately after any significant change in revenue or expenses.

Startup Runway Calculator