Description
Compare constant-burn runway before and after a common founder salary change.
Startup cash budgets distinguish available funds, committed outlays, restricted balances and expected receipts. Subtracting commitments can create a negative balance even while total cash remains positive; dividing by burn assumes a constant spending rate.
Compare constant-burn runway before and after a common founder salary change.
When to use this tool
Use Founder Salary Runway Tradeoff Term when checking a supplied cash commitment, balance or runway contribution.
How to use the tool and how it works
- Enter cash, otherMonthlyBurn, founderCount, oldSalary, newSalary. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read oldRunway, newRunway, addedMonths. Use the output convention below.
Require nonnegative cash, otherMonthlyBurn and salaries and positive whole founderCount. Both old and new total monthly burns must be positive. oldRunway and newRunway divide cash by otherMonthlyBurn+founderCount*the respective salary; addedMonths = newRunway-oldRunway.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| cash | Cash | Required. Finite number; minimum 0. |
| otherMonthlyBurn | Other Monthly Burn | Required. Finite number; minimum 0. |
| founderCount | Founder Count | Required. Safe integer; minimum 1. |
| oldSalary | Old Salary | Required. Finite number; minimum 0. |
| newSalary | New Salary | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| oldRunway | Old Runway | Required. Finite number. |
| newRunway | New Runway | Required. Finite number. |
| addedMonths | Added Months | Required. Finite number. |
{
"input": {
"cash": 120000,
"otherMonthlyBurn": 10000,
"founderCount": 2,
"oldSalary": 5000,
"newSalary": 2500
},
"output": {
"oldRunway": 6,
"newRunway": 8,
"addedMonths": 2
}
}Limitations and assumptions
- All founders use the same modeled salary and constant burn. Taxes, benefits, salary timing and other changing costs are omitted; negative addedMonths is possible.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a dated cashflow forecast and the actual funding or payment terms when timing, changing burn or enforceability matters.
References
Similar or alternative tools
- Runway Buffer At Burn Rate
Compare gross and reserve-adjusted runway under a constant monthly burn rate.
- Startup Runway Committed Cash Adjustment
Calculate constant-burn cash runway after restricted funds and committed payments, preserving a signed shortfall.