What is Runway?
Runway is the number of months your company can keep operating before it runs out of cash, at its current net burn rate.
Formula
Runway (months) = cash in the bank ÷ monthly net burn
Example
You have $180,000 in the bank. You spend $25,000 a month and bring in $10,000, so your net burn is $15,000. Your runway is $180,000 ÷ $15,000 = 12 months.
Why it matters for early-stage founders
Runway sets your deadline. It decides how many experiments you can run, when you must start fundraising, and when you need to cut costs. Raising money usually takes months, so the real deadline comes well before the money runs out.
The common mistake
Calculating with gross burn or with revenue you have not received yet. Use cash actually spent and cash actually received, and recalculate every month.
Put your runway in your pitch
The free pitch deck template has an "ask" slide that ties the amount you raise to the runway and the milestones it buys.
Get the pitch deck templateGo deeper
Related terms
Reviewed October 1, 2026