Runway and burn rate for startups: a Sheets model
Reading time: 6 min
Updated: June 25, 2026
1. Define your burn rate
Net burn is (revenue − expenses) per month. Distinguish gross and net burn: with revenue, the runway lasts longer, and the model must reflect it.
2. Calculate the runway
Runway = current cash ÷ monthly burn. Show the estimated depletion month and a traffic light by months remaining (less than 9, less than 6, less than 3).
3. Scenarios and sensitivity
Add optimistic, base and pessimistic scenarios varying the burn and the timing of the next round. This way the board decides with data.
Want to automate this process?
Connect all your QuickBooks accounts to Google Sheets with FinBoard and forget about copy and paste.
Try FinBoard Free