What is Zero cash date? Definition, Formula & Benchmarks

Q: What's the difference between runway and zero cash date?

Runway is a duration, the number of months of cash you have left. Zero cash date is that duration expressed as an actual calendar date by counting forward from today. Both come from the same math, but the date is harder to ignore and forces concrete deadlines for fundraising or cutting burn.

Q: Should I use gross or net burn to calculate it?

Use net burn, cash out minus cash in, because that is what actually drains your account each month. Gross burn ignores incoming revenue and understates your runway. If revenue is lumpy or growing, model burn month by month rather than applying one flat average across the whole period.

What is zero cash date?

Zero cash date is the calendar day a startup's bank balance is projected to hit zero at its current net burn rate. It converts abstract runway into a real deadline. Founders divide cash on hand by monthly net burn to get months of runway, then count forward from today to pin the exact date they run out of money.

Formula

Zero Cash Date = Today + (Cash on Hand ÷ Monthly Net Burn)

Cash on HandTotal unrestricted cash in the bank right now
Monthly Net BurnCash out minus cash in per month, averaged over the last 3-6 months

Worked example

A Series A startup has $2.4M in the bank and a trailing net burn of $200K per month, giving 12 months of runway. Counting forward from July 2026, its zero cash date is July 2027. To close a round before then, the founders should start fundraising by early 2027, roughly six months out.

Benchmarks by stage

Kruze Consulting notes the zero cash date is one of the first numbers a startup is asked for at every board meeting, and recommends projecting it from a 3- or 6-month average burn, using detailed month-by-month projections instead of a flat rate when you are hiring or growing fast.

> 12 mo away · Healthy

6-12 mo away · Plan the raise

< 6 mo away · Danger

Source: Kruze Consulting, "Calculating Your Startup's Zero Cash Date" (2024)

Why it matters for fast-growing companies

A raise takes three to six months, so your zero cash date sets the real fundraising deadline, not the day you run out, but the day you must already have a term sheet. Watching it slip earlier each month is the clearest early warning that burn is outrunning plan and needs cuts now.

Frequently asked questions

What's the difference between runway and zero cash date?+

Runway is a duration, the number of months of cash you have left. Zero cash date is that duration expressed as an actual calendar date by counting forward from today. Both come from the same math, but the date is harder to ignore and forces concrete deadlines for fundraising or cutting burn.

Should I use gross or net burn to calculate it?+