Runway FAQ
Quick answers to the most common questions about Runway. For the full definition, formula, and benchmarks, see the Runway glossary page.
What is runway?
Runway is how many months of operation a company has left at its current net burn rate before cash runs out. $1.2M in the bank at $100K monthly net burn is 12 months of runway.
How do you calculate runway?
Runway (months) = Cash Balance / Monthly Net Burn. Use net burn — cash out minus cash collected — not gross spend.
How much runway should a SaaS startup have?
A common target is 18–24 months after a fundraise, giving enough time to hit the next milestone and raise again before dropping below 6 months of cash.
Keep exploring Runway
Runway is the number of months a company can keep operating before running out of cash, given its current cash balance and net burn rate. Read the full Runway definition for formulas, benchmarks, and common mistakes.