Startup Runway: How to Know How Many Months of Cash You Have Left
Runway is the single most important number for an early-stage company. Here's how to calculate it from your burn rate and how much you should keep.
What runway means
Runway is how many months your business can keep operating before it runs out of cash, at the current rate of spending. It's the number every founder should know off by heart. The free Startup Runway Calculator works it out in seconds.
The formula
Runway (months) = cash on hand ÷ net monthly burn, where net burn = monthly spend − monthly revenue. If you hold AED 500,000, spend AED 80,000, and earn AED 30,000 a month, your net burn is AED 50,000 and your runway is 10 months.
Gross vs net burn
Gross burn is total monthly spend; net burn subtracts revenue. As revenue grows, net burn shrinks and runway extends — and once revenue exceeds spend, you're cash-flow positive and runway is effectively unlimited.
How much runway to keep
Many investors suggest holding 12–18 months of runway so you can hit milestones and raise your next round from a position of strength rather than desperation. Watch the trend, not just the snapshot — a shrinking runway is a call to act early.
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