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5 min
How to calculate your startup runway in 10 minutes
Runway is the one number every founder should know by heart. Here is a simple way to calculate it and keep it up to date.
Maya Lind
Why runway matters
Runway tells you how many months you can operate before you run out of cash. Investors ask for it, your team worries about it and every hiring decision depends on it.
The simple formula
Take your current cash balance and divide it by your average monthly net burn over the last three months. If you have 900,000 in the bank and burn 75,000 a month, you have twelve months of runway.
Keep it honest
Update the number every month, include committed spend like new hires, and model a best and worst case. Ledgr does this automatically from your bank and card data.
Join 2,000+ startups that close their books faster and always know their runway.