What Is SaaS Runway?
Runway is the number of months a startup can keep operating before it runs out of cash. For SaaS companies, it is driven by two numbers: how much cash you have and how fast you spend it (your burn rate). A shorter runway means you must raise capital, cut costs, or grow revenue soon.
Runway Formulas
- Net Burn = Gross Burn − Monthly Revenue (MRR)
- Runway (net) = Cash on Hand ÷ Net Burn
- Runway (gross) = Cash on Hand ÷ Gross Burn
If your revenue exceeds your gross burn, your net burn is negative and you are effectively profitable — your runway is unlimited.
Why Track Runway by Burn Rate?
- Know exactly when you need to raise your next round.
- Stress-test cost-cutting and hiring plans.
- Communicate financial health to investors and boards.
- Avoid the surprise of hitting zero cash.
How to Use This Calculator
1. Enter your cash on hand. 2. Enter your monthly gross burn (total monthly expenses). 3. Enter your monthly revenue / MRR. 4. See your net-burn runway, gross-burn runway, and projected depletion date.
| Scenario | Cash | Gross Burn | MRR | Runway |
|---|---|---|---|---|
| Early seed | $500K | $40K | $5K | ~14 mo |
| Growth | $2M | $150K | $80K | ~29 mo |
| Profitable | $1M | $30K | $45K | Infinite |
Use this free tool to model layoffs, pricing changes, or fundraising timing before they become urgent.