Step-by-step walkthrough

Runway & Burn Rate Guide

Use this companion guide beside the interactive calculator to make sure you understand the “why” behind every click. Each section includes the classroom explanation, student-friendly language, and quick practice prompts.

Before you start

Collect the data points listed below and double-check their units. Keeping an organized “givens” list is one of the fastest ways to reduce math errors and impress exam graders.

  • runway
  • burn rate
  • cash

Detailed procedure

  1. Step 1

    Enter cash on hand and current monthly net burn.

  2. Step 2

    Optionally add the amount burn grows each month.

  3. Step 3

    Review runway in months and days.

Teaching & troubleshooting tips

Can I model declining burn?

Set the burn increase to zero and manually adjust burn downward each time you revisit the calculator.

Does it include new funding?

No. Add funding rounds to cash on hand when they close, then rerun the numbers.

Next steps