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How much to raise: the right size for your round

Find out how much money to raise to reach your next milestone with room to spare: the calculator projects cash with your hiring plan, adds a safety margin and shows the trade-off between months of runway and shareholder dilution.

Educational simulation. Not investment advice. Results are estimates based on the data you enter and do not replace advice from a qualified professional.

Reviewed on Oct 31, 2026

Current situation and plan

Example: a startup with recurring revenue that will hire after the round.

The round

Funds usually recommend raising for 18 to 24 months: the next round takes 6 to 9 months to close and must start with new metrics to show.

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—How much to raise
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Cash over the next 36 months

With the suggested raise and without raising, under the same spending plan.

Tap the chart to see the values.

Raising more buys time but costs ownership

Runway and dilution for different round sizes at the same pre-money.

Tap the chart to see the values.

How much to raise by growth and runway

Rows: monthly revenue growth. Columns: months of runway wanted. The outlined cell is your scenario.

Month-by-month projection

Next step

Take this page’s results to another calculator with the fields already filled in.

See the dilution in the cap table →

The summary lists your inputs, results, formulas, assumptions and sources. The full report also includes the charts and interpretations, in color. In the print dialog, choose Save as PDF.

Method, assumptions and sources

Formulas

Monthly net burn = (fixed + new expenses) × (1 + growth)^(m − 1) − revenue × gross margin
Need = largest cumulative cash consumption within the target runway − current cash
Raise = need × (1 + safety margin), rounded up to the next 100,000
Dilution = investment ÷ (pre-money + investment)

Assumptions and limits

  • Educational simulation. The raise is received in the first month; dilution excludes the option pool.
  • It does not consider late payments, seasonality, taxes on revenue or step-ups in hiring.
  • Funding rounds involve contracts with terms that change real dilution; consult a corporate lawyer.

Official sources and references

Frequently asked questions

How much should a startup raise?

Enough for 18 to 24 months of runway under the growth plan, plus a safety margin of 15% to 30%.

Why raise for 18 to 24 months?

Because the next round takes 6 to 9 months to close and the company needs to arrive with new metrics to show.

How do I read the default example?

With $800,000 in cash, $60,000 of revenue growing 6% a month and expenses rising to $300,000 with the new hires, the startup needs about $5.1 million for 24 months and should raise $6.1 million with a 20% cushion. Without raising, cash runs out in month 4.

How do I calculate the dilution of a round?

Investment ÷ (pre-money + investment). With $6.1 million on a $15 million pre-money, about 28.9%.

Is raising too much a problem?

It dilutes founders unnecessarily and can encourage unfocused spending. Ideally you raise for the next milestone with room to spare.

Where do I get the expected pre-money?

From conversations with investors, recent rounds of similar startups at the same stage and sector, and valuation methods such as VC, Scorecard and Berkus. Use a conservative figure: if the pre-money comes in lower, dilution will be higher.

When should I talk to a professional?

Before signing any term sheet. Funding rounds involve contracts with terms that change real dilution, such as the option pool, liquidation preference and convertible notes; a corporate lawyer and an accountant can help you assess the offer and the cash plan.

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How much to raise in a funding round

Raising too little forces you back to investors in a hurry, with little negotiating power. Raising too much dilutes the founders unnecessarily and can encourage unfocused spending. The right round size is the one that takes the company to its next milestone with room to spare.

The 18-to-24-month rule

Funds usually recommend raising enough for 18 to 24 months of runway. The next round takes 6 to 9 months to close, and the company needs to arrive with new metrics to show, such as revenue, growth and retention.

How to calculate it

  • project net burn month by month, including the hires planned after the round;
  • add up cash consumed until the end of the target runway and subtract the cash you have;
  • add a safety margin, usually 15% to 30%.

In the calculator’s example, for 24 months of runway the startup needs about $5.1 million and, with a 20% margin, should raise $6.1 million. At a $15 million pre-money, the shareholders give up 28.9% of the company.

The example uses the calculator’s default values; replace them with your own.

Runway versus dilution

Every extra dollar raised buys time and costs ownership. The calculator’s chart shows both effects for different round sizes. Stronger traction reduces the capital needed and usually raises the pre-money: both effects reduce dilution.

Define the milestone before the amount

Answer this first: what does the company need to prove before the next round? It might be reaching a certain MRR, validating a new channel or entering another market. The amount raised should fund that milestone, not just keep the lights on.