Financial Runway Calculator for Founders
Know to the week how long your money lasts and when to act.
Finance & SpreadsheetsPDF · 6 pages· v1.0
4.4Know to the week how long your money lasts and when to act.
Finance & SpreadsheetsPDF · 6 pages· v1.0
4.4A clear guide to calculating and managing financial runway in a spreadsheet, for startup founders, indie hackers and small-business owners burning down a cash balance. Runway is the number of months until you run out of money at your current burn rate. It is the single most important number for any pre-profit venture, yet many founders only estimate it vaguely. This guide teaches you to calculate gross burn, net burn and runway precisely, then build a spreadsheet that updates as your numbers change. It explains the difference between gross and net burn (and why investors ask about both), how revenue shortens nothing about burn but extends runway, and how to set trigger points well before zero so you are never raising or cutting from a position of panic. It is written for non-finance founders. You will learn to separate fixed from variable costs, model a hiring decision's impact on runway, build a best/expected/worst scenario, and define the date by which you must either be default-alive or have a funding plan in motion. The outcome is an honest, current runway number and a decision calendar tied to it. You own the file; nothing is shared and there is no subscription.
Gross burn is total cash you spend per month. Net burn is gross burn minus revenue — your actual monthly cash loss. Runway is calculated from net burn. The guide explains why investors ask for both.
Yes. Revenue reduces net burn, which extends runway. The guide shows how to include lumpy or growing revenue without overstating how long your cash lasts.
Well before zero. The guide helps you set explicit trigger months (often 6 months of runway remaining) so decisions are made calmly, not in a crisis.
No. It works equally for a bootstrapped business spending savings. Runway is just 'how long until the money runs out' regardless of where the money came from.
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