Startup Metric
How to calculate runway from cash and burn rate and how founders should interpret the result.
Core formula
Runway = cash available ÷ monthly net burn
SECTION 01
The useful way to interpret definition is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 02
The useful way to interpret formula is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 03
The useful way to interpret example is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 04
The useful way to interpret gross vs net burn is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 05
The useful way to interpret scenario planning is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 06
The useful way to interpret fundraising timing is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 07
The useful way to interpret common mistakes is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.
SECTION 08
The useful way to interpret related metrics is to connect the number to an actual business decision. Define the period, customer population, revenue basis, and costs consistently, then compare the metric over time and across meaningful cohorts.