Costs & Fundraising
How do I calculate runway and burn rate in a simple way?
Answer:
Burn rate refers to how much cash you spend each month (after revenue). Runway is calculated as cash in the bank divided by monthly burn. Keep it simple: include payroll, contractors, cloud services, tools, and marketing or sales expenses. Update this figure every month. If burn is increasing, model best-case and worst-case scenarios so you know when to cut costs or seek additional funding.
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