Burn rate and runway
4 cards · about a minute · 27 October 2026
- 1 of 4
Burn rate is how much cash you spend each month.
- 2 of 4
$400K ÷ $50K
Cash in the bank ÷ monthly burn
= 8 months of runway.
- 3 of 4
Start raising money with at least 6 months of runway left.
- 4 of 4
To stretch runway: grow revenue or cut costs.
Test yourself
$400K in the bank, $50K spent a month. How long is your runway?
- 4 months
- 8 months
- 12 months
Show the answer
8 months. Runway is cash divided by monthly spend: $400K ÷ $50K = 8.
More in 60 seconds
A new 60-second explainer every weekday.
Join Younifyd, the network for founders and student founders: daily explainers, a weekly comic, and people to build with.
Join now