How much runway should a new startup have?

It is generally recommended to have at least 6 to 12 months of runway (cash reserves) before launch to account for slow early revenue growth.

What is included in monthly burn rate?

Monthly burn rate includes all recurring costs such as rent, salaries, software subscriptions, insurance, and marketing overhead.

Get Started

Launch Engine

Startup Cost Calculator

Map out your path to profitability. Estimate one-time launch fees, monthly overhead, and your total capital requirements.

Add Expenses

Expense Name

Amount ($)

Type

Expense List

Equipment & Hardware

One-Time

$2000.00

Estimated Capital Needed

$2000.00

Includes 100% of one-time costs + 6 months of operating runway.

One-Time Costs

$2000.00

Monthly Burn

$0.00

Tip: Most startups underestimate their costs by 30%. Consider adding a "Contingency Fund" item.

Burn Rate Logic

One-Time Capex

Upfront capital expenditures like equipment, legal incorporation, branding, and security deposits. These are the costs to "turn on the lights."

Monthly Opex

Recurring operating expenses. Rent, payroll, software, and marketing. Determining your "Burn Rate" is critical for survival.

The Runway Formula

Capital Logic

Cash ÷ Monthly Burn

Survival Metric

Runway Months

Most startups fail because they run out of runway before they reach "default alive" status (profitability). Aim for 18 months of runway if you are pre-revenue.

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