Finance
Runway Calculator
Calculate the number of months your business will be in operation based on cash, expenses, and revenue — with a base and conservative scenario. Type in your actual number or drag the slider to play with demo parameters.
= 5.000.000.000 ₫
= 600.000.000 ₫
= 150.000.000 ₫
= 80.000.000 ₫
Runway dự kiến
Cash balance theo tháng (18 tháng)
Assume burn and revenue remain constant throughout the period. In fact, costs often increase as you hire more. The conservative scenario increases total costs by 20% (including recruitment) and reduces revenue by 20%.
What is Runway and why do investors always ask this number?
Runway is the number of months a business can still operate with its current cash flow, if revenue and expenditure levels remain the same as they are currently. This is often the first question investors ask, because it indicates how much time the business has left to reach the next milestone before needing to raise more capital.
Dùng công cụ này khi nào
- When planning to raise capital: it is customary to start talking to investors when the runway is about 6–9 months old, because a capital raising round usually takes 3–6 months.
- When considering increasing costs, hiring more people or expanding markets and want to know how much that decision shortens the runway.
- When you need to answer the question "how much capital does the business need and for how long" in the capital call document.
Basic calculation
Runway (month) = Cash on hand ÷ Monthly net burn Net burn = Monthly operating expenses − Monthly revenue
First, take the expenses paid each month and subtract the revenue earned each month to get the actual amount of money lost (net burn). Then take your current cash and divide it by this number. If revenue is greater than expenses, the business is no longer burning capital and runway is no longer theoretically limited.
Ví dụ: The business has 3 billion VND in cash, spends 500 million VND per month and earns 200 million VND in revenue. Net burn is 300 million VND, runway is 3,000 ÷ 300 = 10 months.
Thuật ngữ trong công cụ
- Cash availableCash balance
- All business money can be used immediately: bank account balance and withdrawable deposits. Does not include outstanding customer debt or unsold assets.
- Monthly operating costsMonthly operating cost
- Total money spent each month for the business to operate: salaries, office rent, technology infrastructure, marketing, outsourcing and other regular costs.
- Net burnNet burn rate
- The actual amount of money lost each month after deducting revenue. This is the number that determines the runway, different from gross burn, which is total expenses before deducting revenue.
- RunwayCash runway
- The number of months the business can still operate with its current cash flow, assuming income and expenditure levels remain unchanged.
- Cautious scenarioConservative scenario
- How to recalculate runway when assuming lower revenue or higher costs than expected, to see how much the business can withstand if the market is not favourable.
Đọc kết quả thế nào
Under 6 months
Warning level. Businesses need to prioritize arranging capital or cutting costs immediately, because the remaining time is often not enough to complete a capital call.
6 – 12 months
This is a reasonable time to start preparing documents and discussing with investors, when businesses are still in an active position in negotiations.
Over 18 months
Businesses have room to focus on products and growth. If you are calling for capital, you need to clearly explain what milestone the new capital will take the business to.
Results from the tool are for reference only, based on the data you enter and assuming constant income and expenditure levels. This is not investment advice or a commitment by the Fund as to its funding capacity.
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