Runway & Default Alive / Default Dead

Projects whether a startup reaches profitability before its cash runs out, the default alive or default dead question, along with current and worst-case runway. Inputs are cash on hand, monthly gross burn, current monthly revenue, and the monthly revenue growth rate.

Interactive Tool

Cash on hand

Monthly spend (gross burn)

Current monthly revenue

Monthly revenue growth

Paul Graham diagnostic

Default Alive

Reaches profitability in ~10 months, before cash runs out.

Net burn / mo

$120,000

spend − revenue

Current runway

10.0 mo

cash ÷ net burn

Worst-case runway

6.0 mo

cash ÷ gross burn (rev → 0)

Healthy window

12–18 mo

raising a round takes 3–6 mo

The fatal pinch is short runway, slow growth, and locked-in costs at once. Recalculate default alive/dead monthly and keep a 15–18 month buffer so committed costs never trap you.

Learn the concept

This calculator comes from the free Entrepreneurial Finance course, where the concept is taught with readings, worked examples, and practice questions.

Open Entrepreneurial Finance

Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.