This calculator estimates how long a startup can operate after planned cost reductions or new recurring revenue lower its monthly net cash burn. It compares the current runway with the revised runway, shows the adjusted burn rate, and isolates the number of months gained. The result is useful when founders are evaluating hiring freezes, vendor renegotiations, pricing changes, or revenue initiatives before a financing round.
The model works best as a scenario-planning tool rather than a cash forecast. It assumes the entered changes happen immediately and remain stable each month. Real cash balances may move unevenly because of annual contracts, taxes, debt payments, capital purchases, or delayed customer collections. Use the result to compare operational choices, then confirm the chosen scenario in a detailed month-by-month cash plan.
Use unrestricted cash that can actually fund operations.
Enter average monthly cash outflow after recurring cash inflows.
Include only recurring monthly reductions expected to continue.
Use revenue remaining after direct delivery costs.
Check adjusted burn, current runway, and months gained.
Where:
Assumptions: The planned savings and revenue changes are recurring and begin immediately. One-time restructuring costs are not included.
The main result is an estimate based on the values entered and should be interpreted together with the supporting metrics shown.
Use consistent periods and units, and replace planning assumptions with observed data when available.
Given:
Calculation:
Adjusted burn = $30,000 − $5,000 − $4,000 = $21,000. Extended runway = $120,000 ÷ $21,000 = 5.71 months. Current runway = $120,000 ÷ $30,000 = 4.00 months.
Result: 5.7 months, a gain of about 1.7 months.
The proposed changes extend the operating window, but the company should still account for timing differences and one-time costs.
The calculator reports an indefinite runway because recurring inflow and savings fully offset the entered burn. That does not guarantee unlimited cash; irregular expenses can still reduce the balance.
Use the portion of added revenue that contributes cash after direct costs. Entering gross sales can overstate the runway extension.
Not in the recurring savings field. Subtract those one-time costs from cash first, then enter the ongoing monthly savings.
This tool uses a steady monthly burn. A financial model may include collection timing, annual payments, taxes, and seasonality.
Run each plan separately with consistent cash and baseline burn assumptions. Compare both the months gained and the operational risk of achieving each change.