What is Runway?
How many months of cash you have left at your current net burn - the founder’s countdown clock.
Runway: definition
Runway converts your cash balance and burn into a single, visceral number: how long until the money runs out. It frames every major decision - when to raise, whether to hire, how aggressively to grow - because it is the constraint that ends the business if it hits zero. Extending runway means reducing burn or increasing revenue.
Cash runway
Runway (months) = Cash on Hand ÷ Net Monthly Burn
If net burn is zero or negative (cash-flow positive), runway is effectively unlimited at current performance.
How Fintra handles it
Fintra keeps runway live from the actual cash balance and net burn, and lets you stress-test it: model a new hiring plan, a slower sales month, or a price change and watch the cash-out date move. Because the inputs come from the ledger, the runway you plan around is grounded in real numbers rather than an optimistic spreadsheet.
Worked example
Frequently asked questions
How much runway should a startup have?
A common guideline is 18–24 months after a raise, giving time to hit milestones before needing to fundraise again. Below ~6 months, raising or cutting becomes urgent. What matters is having enough runway to reach the next value inflection with a buffer.
How do you extend runway?
Reduce net burn (cut costs or grow revenue) or add cash (raise capital, debt, or collect faster). Even small burn reductions can add months. Fintra lets you model each lever against live cash before you commit.
What is the difference between runway and burn rate?
Burn rate is how much cash you spend per month; runway is how many months that spending can continue given your balance. Runway = cash ÷ net burn. They are two views of the same cash-survival question.
Does Fintra forecast runway?
Yes. Fintra keeps runway live from real cash and burn and lets you stress-test it under hiring, revenue, and spend scenarios, so the cash-out date reflects decisions you are actually considering.
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