📖 Overview
Hiring changes burn profile and can shorten optionality fast.
This tool models baseline runway then a second burn phase after your hiring date.
Use it to test whether growth plans fit real cash constraints.
🧪 Example Scenarios
Use these default and higher-pressure example inputs to explore how sensitive this calculator is before using your real numbers.
| Input | Base Case | Higher Pressure Case |
|---|---|---|
| Current Cash ($) | 220,000 | 198,000 |
| Current Monthly Burn ($) | 28,000 | 33,600 |
| Burn Change After Hiring ($) | 9,000 | 10,800 |
| Months Until Hiring | 4 | 4.6 |
⚙️ How It Works
Compares current runway with a two-phase burn scenario that changes after a hiring milestone.
The Formula
Runway = Phase1 Months + Remaining Cash ÷ Post-Hire Burn
| Phase1 Months | Months until hiring at current burn rate |
| Remaining Cash | Cash left after phase1 burn |
| Post-Hire Burn | New monthly burn after hiring/cost shift |
| Runway | Total months of survival under scenario |
💡Runway should be paired with fundraising lead-time; survival to zero is not a safe operating target.
Quick Reference
| Cash | Current burn | Post-hire burn | Runway effect |
|---|---|---|---|
| $220k | $28k | $37k | Shortens runway materially |
| $350k | $30k | $36k | Moderate reduction |
| $500k | $40k | $46k | Manageable with revenue support |
| $180k | $25k | $35k | High survival risk |
When To Use This
- Use this tool when you need a fast decision during active planning or execution.
- Use this before committing money, time, or tradeoffs that are hard to reverse.
- Use this to compare options using the same assumptions across scenarios.
Edge Cases To Watch
- Results can be misleading if key inputs are missing, stale, or unrealistic.
- Very small or very large values may amplify rounding effects and interpretation risk.
- If assumptions change mid-decision, recalculate before acting.
Practical Tips
💡 Model both optimistic and conservative hiring timing.
💡 Use this when testing “hire now vs later” tradeoffs.
💡 Keep an operating buffer beyond minimum survival runway.
Frequently Asked Questions
❓ What if cash runs out before hiring month?
The model reports that failure mode explicitly.
❓ Can burn increase be negative?
Yes, if you expect cost cuts instead of increases.