GuideCalculatorDetailed Guide

How to Build a Runway Calculator

Startup runway calculates how many months a company can operate before running out of cash. A runway calculator is essential for founders planning fundraising and managing burn rate.

What is a Runway Calculator?

Runway is your current cash balance divided by monthly burn rate. Burn rate is the net cash outflow per month (expenses minus revenue). Understanding runway helps time fundraising and make strategic hiring decisions.

The Formula

Runway (months) = Cash Balance / Monthly Burn Rate
Monthly Burn = Monthly Expenses - Monthly Revenue
Gross Burn = Total Monthly Expenses (ignoring revenue)

Code Example

JavaScript
function calculateRunway(cashBalance, monthlyBurn) {
  if (monthlyBurn <= 0) return Infinity; // Profitable or break-even
  return Math.floor(cashBalance / monthlyBurn);
}

function calculateBurnRate(expenses, revenue) {
  return expenses - revenue; // Net burn
}

function calculateRunwayWithGrowth(cash, burn, monthlyGrowthRate) {
  let months = 0;
  let currentBurn = burn;
  let remainingCash = cash;

  while (remainingCash > 0 && months < 120) {
    remainingCash -= currentBurn;
    currentBurn *= (1 - monthlyGrowthRate); // Burn decreases as revenue grows
    months++;
  }
  return months;
}

How to Build It

  1. 1

    Create inputs for current cash balance and monthly expenses

  2. 2

    Add revenue input for net burn calculation

  3. 3

    Implement basic runway calculation

  4. 4

    Add scenario modeling with different burn rates

  5. 5

    Show fundraising timeline recommendations

Key Features to Include

Net vs gross burn rate toggle

Scenario planning with adjustable variables

Fundraising timeline based on runway

Burn rate trend visualization

Alert when runway drops below 6 months

Monetization Strategies

Freemium startup finance tool

Premium: scenario modeling and forecasting

Integration with accounting software

Lead generation for startup services

Recommended Tech Stack

Frontend

React with interactive charts for scenario visualization

Backend

Optional API for saving scenarios

Hosting

Static hosting for cost efficiency

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