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How to calculate Startup runway (months)

The Startup runway (months) formula, with plain worked examples you can check yourself.

Startup runway (months) = Cash ÷ B

Worked examples

Cash = 240 · B = 10Startup runway (months) = 24
Cash = 500 · B = 50Startup runway (months) = 10
Cash = 240 · B = 40Startup runway (months) = 6

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Funding & Growth.

Related terms

RunwayVenture capitalBurn rateIPOPivotSeed funding

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