Cash Runway Calculator
UAE 2026
Project your cash flow, model burn rate and growth scenarios, see how many months of runway you have left, and find out if you’re Default Alive — a free cash-flow forecasting tool for UAE startup founders.
Calculate RunwayRunway Scenarios
| Scenario | Cash | Revenue | Expenses | Growth | Runway | Alive? |
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Understanding Cash Runway
What Is Cash Runway?
Cash runway tells you how many months your business can keep operating before the money runs out. It’s calculated by dividing cash on hand by net monthly burn (expenses minus revenue).
Paul Graham’s “Default Alive” Framework
- Default Alive — at your current growth rate, revenue will overtake expenses before cash runs out
- Default Dead — cash will run out before revenue catches up, even with growth
- Why it matters — it forces founders to answer the hardest question: do you need to raise money to survive?
When to Worry
- < 6 months — Critical. Fundraise or cut costs immediately. Most rounds take 3–6 months to close.
- 6–12 months — Caution. Enough to execute, not enough to be comfortable. Plan your next move.
- 12–18 months — Healthy. Focus on growth and milestones.
- 18+ months — Strong. Room to experiment and find product-market fit.
How to Extend Your Runway
- Cut non-essential spend — software subscriptions, marketing experiments, office perks
- Renegotiate contracts — office rent, supplier terms, payment schedules
- Accelerate revenue — prepaid plans, annual billing, faster sales cycles
- Raise capital — equity round, convertible notes, revenue-based financing
- Bridge financing — short-term facility to buy time for a full round
Frequently Asked Questions
What is cash runway?
Your cash runway is the number of months you can keep operating before you run out of money. You can calculate this by dividing your current cash balance by your net monthly burn rate, which is simply your expenses minus revenue.
What does “Default Alive” mean?
Coined by Paul Graham, “Default Alive” is a situation where, at your current revenue growth rate and expense levels, your revenue will overtake your expenses before you run out of cash. We say a startup will default alive when it is expected to survive without needing additional funding.
How much runway should a startup have?
If your runway is more than 18 months, you have plenty of room to experiment, but the recommended and realistic length is 12-18 months. If your runway is less than 6 months, you should already be fundraising or cutting costs.
What’s the difference between gross burn and net burn?
Gross burn is your total monthly expenses. If you subtract your revenue from the gross burn, you will arrive at your net burn, i.e., the cash flowing out of your reserves every month. Our calculator considers net burn since it’s a more realistic determinant of runway length.
Why are there two growth modes (% vs AED)?
Our calculator is capable of modelling compounding as well as linear growth. Investors are typically not interested in absolute growth. They want to know how much revenue growth was achieved with respect to last month or year, which is compounding growth. Early-stage founders, on the other hand, measure growth in absolute terms, i.e., how many users are added every month. By enabling both kinds of inputs, our tool holds utility for investors as well as founders.
Does this calculator account for taxes?
No, our cash runway calculator does not account for corporate tax since it is paid annually, and most early-stage UAE businesses qualify for Small Business Relief (SBR) under which a 0% corporate tax is applicable. Talk to our accounting team for tax-inclusive cash flow forecasting.
How to extend your startup’s cash runway?
The options available for extending the runway may differ from startup to startup, but in general, the solutions will center around accessing more funding, lowering costs, and improving revenue.
Need help with cash flow projection?
Skrooge is the virtual accounting team for UAE startup founders — runway, cash flow projections and investor reporting, built on real numbers.
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