How the math works
The formula is brutally simple:
net burn = monthly burn − monthly revenue
runway months = cash on hand ÷ net burn
If net burn is zero or negative (revenue ≥ burn) you're at or past breakeven — runway is effectively infinite, the calculation just shows the monthly profit instead.
The three scenarios stress-test the two levers you can actually pull:
- Cut burn 25%. The fastest lever — usually one or two role decisions.
- Grow revenue 25%. Slower, but compounds. Pricing fix or a new motion.
- Both. What "default-alive" looks like. PG's term.
None of this replaces a real model — it replaces the panic-googling moment at 2am before a board call.