Financial Health
Burn Rate Simulator
Growth is vanity, Runway is sanity. Calculate exactly how many months you have left before you run out of cash, and see if you are "Default Alive."
Financial Inputs
Caution
7.5
Months of Runway
Zero Cash Date
September 2026
Net Monthly Burn
-$20,000
Cash consumed per month.
Daily Cost
$1,167
Cost to operate every 24 hours.
Recaport Analysis
Fundraising Zone. You have enough time to close a round, but you need to start the process now. A typical seed round takes 4-6 months to close.
Key Definitions
- Gross Burn: Your total monthly expenses (Salaries + Rent + Servers + Ads).
- Net Burn: Gross Burn minus Revenue. This is the actual cash leaving your bank account every month.
- Runway: Cash Balance ÷ Net Burn. The number of months until you hit $0.
The "Default Alive" Concept
Coined by Paul Graham, this means you can reach profitability with your current cash on hand, without needing to raise more money.
- Default Alive: You control your own destiny. Investors love this.
- Default Dead: You will die unless you raise money. You have zero leverage in negotiations.