Business

Cash Runway & Burn Rate Calculator

How many months of operation does your bank balance give you? Find your net burn, runway, and the date your cash runs out. Customize adds growth-adjusted runway, Default Alive verdict, and your fundraising deadline.

How to use this How is this calculated?

Detail levelQuick shows flat-line runway (constant burn). Customize lets you model month-on-month revenue + expense growth, get a Default Alive / Default Dead verdict (Paul Graham), and find the date you need to start fundraising.

Current cash balance (AED)All available cash — bank accounts + credit lines you can actually draw on + reserved investments. Exclude accounts receivable you haven't collected yet.

Monthly expenses (AED)Total monthly outflows: salaries, rent, software, marketing, professional fees, anything else that leaves the bank.

Monthly revenue (AED)Cash revenue actually received this month (not invoiced — received). For SaaS, MRR. For services, billings actually paid.

Enter your current cash and monthly expenses.

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How to use

1
Enter your current cash balance. This is real cash in the bank, plus credit you can actually use. Don't include money clients owe you but haven't paid.
2
Enter monthly expenses. The full outflow — salaries, rent, software, ads, accountant fees, everything.
3
Enter monthly revenue. Cash received, not invoiced. The two often diverge in services businesses.
4
The result shows your net burn (expenses minus revenue) and runway in months. The danger zone alert tells you when to take action.
5
Quick rule: if runway is under 12 months, you have 1-2 months to either raise more cash or cut burn before things get tight.

Frequently asked questions

Gross burn = total monthly expenses (cash going out). Net burn = expenses minus revenue (the cash you're actually losing each month). For a profitable business, net burn is negative — you're adding cash. For a startup with 100K expenses and 40K revenue, net burn is 60K/month.

Industry norms: under 6 months = crisis. 6-12 months = act now. 12-18 months = standard fundraising window. 18+ months = comfortable. Each fundraise typically takes 3-6 months to close, so 12 months of runway is generally the point at which most founders begin a new round.

Cautiously. Receivables aren't cash until they're paid. For UAE clients, payment terms are often net 30-60 with some practical slippage. A conservative runway only counts cash in the bank. A more aggressive view includes 70-80% of confirmed receivables.

Net burn divided by monthly revenue. Tells you how efficiently you're spending to generate revenue. Under 1× is great (you spend AED 1 in burn for each AED 1 of revenue gained). Over 3× is concerning. Under 0 means you're profitable and don't need this metric.

Because real businesses don't burn linearly. Q1 usually dips after Q4 strength. Expenses can spike on a single big hire or office renewal. Revenue can drop if a key customer churns. Real runway is usually 70-80% of calculated runway — that's why the 25-30% safety buffer matters.

Most startup advice: start the fundraise when runway hits 12 months, plan for it to take 6, and accept it might take 9 if markets cool. If you only start at 6 months runway, you'll be negotiating from weakness and likely accept worse terms.

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Source: Standard startup finance metrics + Paul Graham 'Default Alive or Default Dead' · Last verified 2026-06. Paul Graham — Default Alive or Default Dead. This tool provides estimates only and is not legal, tax or financial advice. Always verify your specific situation with the relevant UAE authority or a licensed advisor before taking action.