CORE MBA

Cash Runway

Startup Runway & Burn Rate Calculator

Survival

Predict how many months of operational life you have left before capital exhaustion.

Survival runway (months)25.0
Runway (months)$2,000
StatusBURN

Strategic deep theory

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THE ULTIMATE TIMER

Runway is the only metric that tracks how much 'permission to exist' you have left. In the startup world, cash is the only variable that is 100% terminal.

If you run out of cash, the game ends instantly, regardless of your vision or your team's talent. Managing runway is not an accounting task; it is the fundamental duty of leadership.

DEFAULT ALIVE VS DEFAULT DEAD

A concept popularized by Paul Graham that every founder must memorize.

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DEFAULT ALIVE: If you don't raise any more money and revenue growth continues on its current path, you will reach profitability before running out of cash.

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DEFAULT DEAD: If you don't raise more money or make radical changes, you will go bankrupt.

Most founders are Default Dead and don't know it. They are betting their company's life on the generosity of future investors.

TACTICAL Q&A

Q: What is a safe runway buffer?
A: For most businesses, 18-24 months is the 'Sanity Zone'. Anything under 6 months is a 'War Zone' where you must stop all long-term strategic projects and focus 100% on survival capital.
Q: How do I extend my runway without raising capital?
A: The 'Butcher's Audit'. Cut every recurring expense that doesn't directly map to revenue or the North Star Metric. Simultaneously, pivot to 'High Velocity' sales—shorter sales cycles and upfront annual payments.

TERMS: RUNWAY VS BURN RATE

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BURN RATE: The total amount of cash the company is losing every month. (Negative Cash Flow).

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RUNWAY: Total Cash / Monthly Burn. (The fuse on the bomb).

If you have $100k and burn $10k/mo, your fuse is 10 months long. Act accordingly.

Contextual glossary

Runway[+]
Burn rate[+]

Diagnostic report

Interpretation

"25.0 months until zero cash."

Identified pattern

STABLE BURN

Solution mastery required:

Burn Rate Survival

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