Default-Alive Startup: $750K Cash, $60K Expenses, $60K Revenue
When monthly revenue equals monthly expenses a startup is default alive with unlimited runway on $750K cash.
How to use this tool
- Enter cash on hand, monthly revenue and monthly total expenses in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your cash runway and the full breakdown beneath it.
A startup is "default alive" when revenue covers all expenses; this scenario shows what breakeven looks like and how cash reserves become a strategic asset rather than a lifeline.
Frequently asked questions
- What is the difference between gross burn and net burn?
- Gross burn is total monthly cash spent. Net burn subtracts revenue, showing the actual cash consumed per month. Net burn is what determines runway — it tells you how long your current cash will last at the current spending pace.
- How can I extend my runway?
- Cut non-essential expenses, accelerate revenue growth, raise additional capital, or offer discounts for annual prepayments. A common rule of thumb: if runway drops below 6 months, take immediate action.
- What is a healthy runway?
- Most VCs advise maintaining 18–24 months of runway at all times to allow time for fundraising (which typically takes 6–12 months) without operating under distress.