Global — applies to SaaS businesses in US, UK, Canada, and worldwide
SaaS Runway Calculator — $10K MRR
Early-stage startups at $10K MRR often target 12–18 months of runway while validating product-market fit. Adjust inputs to model your own cash, burn, and revenue.
Early-stage startups at $10K MRR often target 12–18 months of runway while validating product-market fit.
Runway is the number of months your company can operate at its current spending pace before cash reaches zero. For venture-backed SaaS startups, runway is one of the first metrics investors ask about because it signals how much time you have to hit milestones before the next fundraise.
Net burn matters more than gross burn. If you spend $80,000 per month but collect $50,000 in recurring revenue, your net burn is $30,000 — and that is the number that determines runway, not the full expense figure.
How to use this calculator
Enter your current cash balance (checking, savings, and any committed credit lines you realistically plan to draw). Add total monthly operating expenses and, if applicable, monthly recurring revenue.
Use the result as a planning baseline, not a forecast. Hiring plans, churn spikes, or successful upsells will change net burn every month. Revisit the calculator after major budget decisions.
18–24 months runway is a common early-stage target before Series A.
If net burn is zero or negative, runway is theoretically unlimited until costs rise.
Pair runway with CAC and LTV calculators to see whether growth spending is sustainable.
Common mistakes
Founders sometimes exclude payroll taxes, benefits, or annual software renewals from monthly burn. Spread annual costs across twelve months for a realistic average.
Do not count uncommitted fundraising as cash on hand. Only include money already in the bank or under signed SAFE/note agreements with clear close dates.
Frequently asked questions
?How do you calculate SaaS runway?
Divide cash on hand by net monthly burn (expenses minus revenue). If net burn is zero or negative, runway is theoretically infinite until costs rise.
?What is a good runway for a SaaS startup?
Many investors prefer 18–24 months at early stage. The right target depends on growth, fundraising timeline, and market conditions.
?How much runway should a $10K MRR startup keep?
Many early-stage teams aim for at least 12 months of net burn coverage, though the right buffer depends on growth rate and fundraising plans.
?Does MRR directly extend runway?
Only net burn matters. If revenue covers part of expenses, subtract monthly MRR (or gross profit) from burn before dividing cash by net burn.
?Should I include accounts receivable in cash on hand?
Generally no — runway uses liquid cash. AR converts to cash only after collection, so include it only if your average collection cycle is very short and predictable.
?How does annual prepay revenue affect runway?
Cash from annual contracts increases cash on hand today, but you still incur monthly costs. Include the cash received, but model churn and refund obligations separately.