ClarWorks

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Burn Rate & Runway

How fast are you spending cash, and how long until it runs out? Model expenses, revenue, and cash to see your runway.

Healthy16.7 months runway
$50,000
$20,000
$500,000

Results

Net Burn

$30,000

per month

Runway

16.7 mo

12+ months

Benchmarks

Safe18+ months
Good12–18
Tight6–12
Danger3–6
Critical< 3

YC, Bessemer Venture Partners

Cash Projection — 18 months

M0
$500K
M1
$470K
M2
$440K
M3
$410K
M4
$380K
M5
$350K
M6
$320K
M7
$290K
M8
$260K
M9
$230K
M10
$200K
M11
$170K
M12
$140K
M13
$110K
M14
$80K
M15
$50K
M16
$20K
M17
$0
M18
$0

Formulas

Net Burn = Expenses − Revenue

Runway = Cash ÷ Net Burn

Revenue exceeding expenses = cash flow positive (infinite runway).

What your runway means

Healthy, but keep an eye on it.

12–18 months is a safe zone. Protect it: small burn increases shrink runway fast as you scale.

1

Model how each new hire moves runway

2

Build a 6-month-out fundraise trigger

3

Trim non-essential recurring spend

Project inquiry

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Burn & runway summary

Net monthly burn$30,000
Runway16.7 months
Cash in bank$500,000
StatusHealthy