Question 1

How do I calculate startup runway?

Accepted Answer

Runway equals cash in the bank divided by monthly net burn (monthly costs minus monthly revenue). This tool also models a headwind scenario, showing how runway shrinks if costs grow and revenue falls short of plan.

Question 2

Why model a headwind scenario for runway?

Accepted Answer

Plans rarely survive contact with the market unchanged. Modeling a headwind scenario shows how quickly a comfortable runway can shrink, which is the difference between noticing a problem early and being surprised by it.