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RMetrics & moneyUpdated 2 Nov 2026

Runway

How many months the company can operate before cash runs out at the current burn.

Definition

Runway is remaining cash divided by monthly net burn. It is a date, not a vibe. Founders use it to decide when to raise, cut, or change the model — and to stop pretending a low balance is “fine for now.”

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In the room

How the word shows up in a real conversation.

₹48 lakh in the bank and ₹8 lakh net burn is about six months of runway. If a raise needs four months, you are already late.

Formula

Runway (months) = cash in bank ÷ monthly net burn

Common mistake

Counting a promised cheque as cash. Runway only counts money you already have.

India note

Build a buffer for GST, TDS timing, and customers who pay on 60–90 day terms. Booked revenue is not runway.

See also

From the store

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