Runway Extension Calculator
Extend your startup runway.
Calculate startup runway extension from cost cuts and revenue increases. Enter cash to see extended runway after cost reductions and revenue additions.
What this tool does
This tool calculates extended runway after cost reductions and revenue additions.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Startup runway extension calculates how much longer cash lasts after cost cuts or revenue increases. Most startups facing fundraising difficulty need to extend runway from 6-9 months to 12-18 months to reach the next milestone. This tool models the impact of cutting burn and adding revenue on remaining months.
500k cash at 50k/month burn = 10 months current runway. Cut costs 20% (new burn 40k) + add 5k/month revenue = net burn 35k. Extended runway: 14.3 months. Gained 4.3 months. Often enough to close a funding round or reach break-even if changes are implemented decisively.
Runway math is unforgiving. 3 months of delayed action at 50k burn = 150k lost. The earlier cost cuts happen, the more runway extends. Companies that wait until 3 months runway to cut lose far more than those who act at 6 months. Founders consistently underestimate how long fundraising takes (typically 4-6 months for seed, 6-9 months for Series A).
Run it with sensible defaults
Using current cash of 500,000, current monthly burn of 50,000, cost reduction of 20%, revenue increase monthly of 5,000, the calculation works out to 14.3 months. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.
The levers in this calculation
The inputs — Current Cash, Current Monthly Burn, Cost Reduction %, and Revenue Increase Monthly — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
How the math works
New burn = current × (1 - cut %) - revenue increase. Extended runway = cash ÷ new burn. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".
Using this as a check-in
Re-run this every three months. A single reading tells you where you stand; four readings tell you whether things are improving. The trend matters more than any individual snapshot.
What this doesn't capture
The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.
£500,000 £ ÷ (£50,000 £ × (1 - 20%) - £5,000 £) = 14.3 months.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
New burn = current × (1 - cut %) - revenue increase. Extended runway = cash ÷ new burn.
References
Frequently Asked Questions
When to cut?
What to cut first?
Revenue increase realistic?
Bridge round vs cuts?
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