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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMarketing FinanceRunway

Marketing Finance

Runway

How many months a company can keep operating before running out of cash, calculated as cash on hand divided by monthly net burn.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Runway is how many months a company can keep operating before running out of cash, calculated as cash on hand divided by monthly net burn. A company with ten million dollars and one million in monthly net burn has about ten months of runway. Founders use it to time fundraising and spending decisions.