1. Enter launch costs
Include one-time setup, equipment, legal, and pre-opening cash uses.
2. Enter monthly net burn
Use cash outflows minus recurring cash inflows.
3. Choose the funding period
Set the number of months the raise should cover.
4. Add a contingency reserve
Apply a percentage buffer to modeled cash needs.
5. Enter founder funding
Include cash the founders are committed to contribute, then review the external requirement.
Where:
Assumptions: Burn is constant, founder cash is fully available, and the reserve applies to both startup costs and operating burn.
Estimated external funding required.
Use the result as a planning estimate based on the assumptions above.
Given: A startup expects $60,000 of launch costs, $28,000 monthly burn for 10 months, a 12% reserve, and $100,000 from founders.
Calculation: Base need: $60,000 + ($28,000 × 10) = $340,000. Reserve: $340,000 × 0.12 = $40,800. Total need: $380,800. External funding: $380,800 − $100,000 = $280,800.
Result: The modeled external raise is $280,800, with founders covering about 26.3% of total need.
Yes. Enter net cash burn after expected recurring cash receipts, using conservative collection timing.
Yes. If founder funding meets or exceeds total modeled need, no external funding is required under the inputs.
Use startup costs for one-time pre-launch or setup items; use monthly burn for recurring net operating cash use.
A reserve provides room for timing delays or cost variance, but the percentage is a planning choice rather than a fixed standard.
This tool solves for funding required over a chosen period; a runway calculator solves for how long available cash lasts.