You need to raise money.
You don’t know how much.
You need accurate calculation.
You need funding needs clarity.
Funding needs. Capital requirements. Accurate calculation. Your success.
This guide shows you how.
Step-by-step walkthrough. Calculator usage. Real examples. Your clarity.
Read this. Use calculator. Know your number.
Key Takeaways
- Calculate funding need—use Funding Need Calculator to determine exact capital requirements
- Enter burn rate—input your monthly burn rate to see how much you need
- Set runway target—choose desired runway (12-18 months recommended) to calculate funding
- Include growth plans—account for growth investments and strategic initiatives
- Review results—see total funding need, monthly burn, and runway extension
Table of Contents
Why Calculation Matters
Accurate calculation enables smart fundraising.
What happens without accurate calculation:
- Too little: Undercapitalized and vulnerable
- Too much: Excessive dilution and poor signaling
- Wrong timing: Missed opportunities
- Failed fundraising
What happens with accurate calculation:
- Right amount: Sufficient capital for milestones
- Optimal dilution: Preserves equity
- Right timing: Captures opportunities
- Successful fundraising
The reality: Calculation enables success.
Step 1: Enter Burn Rate
Enter your current burn rate:
Calculate Current Burn Rate
Calculate it first:
- Use our Burn Rate Calculator
- Enter current cash and expenses
- See monthly burn rate
- Use this number in funding calculator
Why it matters: Accurate burn rate enables accurate funding calculation.
Enter Monthly Burn
What to enter:
- Monthly burn rate from calculator
- Or manual calculation
- Gross or net burn (be consistent)
- Current monthly spending
Why it matters: Burn rate drives funding need.
Pro tip: Calculate burn rate first. Use our Burn Rate Calculator for accurate number. Then enter into funding calculator.
Step 2: Set Runway Target
Set your desired runway:
Choose Runway Length
What runway to choose:
- 12-18 months: Standard target
- 18-24 months: Conservative target
- 6-12 months: Aggressive target
- Based on milestones and plans
Why it matters: Runway determines funding amount.
Consider Milestones
What milestones to consider:
- Key product milestones
- Revenue milestones
- Growth milestones
- Next funding round timing
Why it matters: Milestones inform runway needs.
Use Runway Calculator
Calculate it:
- Use our Cash Runway Calculator
- See current runway
- Understand runway needs
- Set appropriate target
Why it matters: Understanding current runway helps set target.
Pro tip: Set runway target. 12-18 months is standard. Consider milestones and next funding round timing.
Step 3: Include Growth Plans
Include growth investments:
Growth Investments
What to include:
- Hiring plans
- Marketing investments
- Product development
- Infrastructure expansion
Why it matters: Growth plans increase funding needs.
Strategic Initiatives
What initiatives to include:
- Market expansion
- New product lines
- Technology investments
- Partnership development
Why it matters: Strategic initiatives require capital.
One-Time Costs
What costs to include:
- Equipment purchases
- Office setup
- Legal and compliance
- Other one-time expenses
Why it matters: One-time costs add to funding need.
Pro tip: Include growth plans. Hiring, marketing, product development, strategic initiatives. Growth plans increase funding needs.
Step 4: Review Results
Review funding need results:
Total Funding Need
What to review:
- Total capital required
- Monthly burn rate
- Runway extension
- Growth investment allocation
Why it matters: Review enables validation.
Check Assumptions
What assumptions to check:
- Burn rate accuracy
- Runway target appropriateness
- Growth plan realism
- One-time cost completeness
Why it matters: Assumption check improves accuracy.
Adjust as Needed
What adjustments to make:
- Refine burn rate
- Adjust runway target
- Revise growth plans
- Update one-time costs
Why it matters: Adjustment improves accuracy.
Pro tip: Review results. Check assumptions, validate numbers, adjust as needed. Review ensures accuracy.
Using Results
Use results for fundraising:
Fundraising Materials
What materials to create:
- Pitch deck with funding ask
- Financial projections
- Milestone plan
- Use of funds breakdown
Why it matters: Materials enable successful fundraising.
Investor Conversations
What conversations to have:
- Explain funding need
- Justify amount
- Show milestone plan
- Demonstrate planning
Why it matters: Conversations build confidence.
Decision Making
What decisions to make:
- Proceed with fundraising
- Adjust plans
- Revise ask amount
- Timing decisions
Why it matters: Decisions enable action.
Pro tip: Use results. Create materials, have conversations, make decisions. Results enable fundraising success.
Your Next Steps
Calculate burn rate. Use funding calculator. Review results.
This Week:
- Review this guide
- Calculate current burn rate
- Use Funding Need Calculator
- Review results
This Month:
- Refine funding need calculation
- Create fundraising materials
- Prepare investor conversations
- Make fundraising decisions
Going Forward:
- Update calculation regularly
- Adjust as plans change
- Use for all fundraising
- Improve accuracy over time
Need help? Check out our Funding Need Calculator for funding calculation, our Burn Rate Calculator for burn rate calculation, our Cash Runway Calculator for runway calculation, our milestone-based funding guide for planning, and our funding plan guide for different capital strategies.
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Sources & Additional Information
This guide provides general information about using the funding needs calculator. Your specific situation may require different considerations.
For funding need calculation, see our Funding Need Calculator.
For burn rate calculation, see our Burn Rate Calculator.
For cash runway calculation, see our Cash Runway Calculator.
Consult with professionals for advice specific to your situation.
