Runway

Runway is cash in the bank divided by monthly net burn. It answers the single most practical question a founder tracks: how much time is left before either revenue needs to cover costs, or more capital needs to be raised.

Runway is a snapshot, not a forecast — it assumes the current net burn rate holds steady, which rarely stays exactly true as a company grows headcount, wins new revenue, or cuts costs. It's typically recalculated monthly rather than treated as a fixed number.