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Runway calculator for a raise
Enter cash in the bank, the monthly burn, how many months the raise will take, the amount raised and the burn after closing. The calculator shows runway now, the cash buffer at close and runway after the round.
Cash and debt
Runway after the close
28.8 months
- Runway today
- 12 months
- Cash left at the close
- $1,200,000
- Buffer at the close (months at today's burn)
- 6 months
Planning estimate from the figures you enter. Not investment, tax or legal advice.
How it is calculated
- Runway today = cash / monthly burn.
- Cash at close = cash minus burn x months to close.
- Runway after = (cash at close + amount raised) / burn after the close.
Worked example: $2.4 million in the bank, six months to close
| Runway today | 12 months |
| Cash at close | $1,200,000 |
| Buffer at close | 6 months |
| Runway after the close | 28.75 months |
Start earlier than feels necessary
A raise that is planned for four months often takes six. Starting with twelve months of runway leaves a buffer if the lead takes longer or diligence finds an issue.
Investors read the same numbers
The runway story in the deck should match the monthly management accounts and the budget in the data room. Investors check burn against the bank statements in late diligence.
Plan for 18 to 24 months
Many rounds are sized to fund 18 to 24 months of the new plan, enough to hit the milestones for the next round with a buffer.
Mistakes to avoid
- Assuming the round closes on the planned date.
- Using gross burn instead of net burn.
- A budget in the room that differs from the deck.
- Forgetting the higher burn after hiring with the new money.
Questions and answers
What is net burn?
Cash going out each month minus cash coming in. Gross burn counts only what goes out.
How long does a round take?
Often three to six months from first meetings to money in the bank, longer in a slow market. The timeline planner breaks it down.
Should the budget be in the data room?
Yes, with the use of proceeds and the hiring plan, so investors can tie the round size to the runway.