SaaS Runway Calculator

Cash: $500K, Revenue: $20K/mo, Expenses: $60K/mo Net Burn: $40K/mo Simple Runway: 12.5 months With 10% MoM growth: ~18 months

SaaS runway represents the amount of time, typically measured in months, that a software as a service company can continue operating before running out of cash. It is a critical financial metric for startups, especially those not yet profitable, as it indicates how long they can sustain their current operations given their cash reserves and net burn rate.\n\nThe net burn rate is the difference between monthly expenses and monthly revenue; if expenses exceed revenue, the company is burning cash. Understanding your SaaS runway allows founders and investors to gauge financial health, plan for future funding rounds, and make strategic decisions about growth and spending.\n\nA longer runway provides more time to achieve key milestones, reach profitability, or secure additional capital, reducing immediate financial pressure. Conversely, a short runway signals an urgent need for action, such as cutting costs, increasing sales, or initiating fundraising efforts promptly. This metric is dynamic and changes with fluctuations in revenue, expenses, and cash balance.