What does Default Alive mean?

Coined by Paul Graham of Y Combinator, a startup is Default Alive if its existing cash runway is sufficient to reach profitability at its current growth and expense trajectories without raising additional capital.

Updated: August 2026 • Verified v1.2

SaaS Net Burn & Cash Runway Timeline Simulator

Finance & MathPopular

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Net_Burn_t = Gross_Burn_t - MRR_t; Cash_(t+1) = Cash_t - Net_Burn_t

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Understanding Your Results

Compares simple static runway against dynamic growth-modeled runway, predicts exact zero-cash date or cash-flow breakeven month, evaluates Paul Graham Default Alive status, and outputs a 12-month projection table.

Practical Guidance & Next Steps

Static runway (Cash / Current Net Burn) is overly pessimistic for growing companies and overly optimistic if expenses ramp faster than revenue. Dynamic modeling shows whether you reach breakeven before exhausting cash reserves.

What is this?

A SaaS cash flow runway simulator that models monthly gross burn, net burn, and revenue growth to forecast cash runway.

How does it work?

1. Input cash in bank, monthly expenses, and current MRR. 2. Set MoM revenue growth rate and expense ramp rate. 3. View dynamic runway months, zero-cash date, and 12-month cash projection.

Why use it?

Helps founders know exactly when to start fundraising before cash dips below critical safety thresholds.

Technical Scope & Calculation Limitations

Deterministic monthly financial simulation model.

Frequently Asked Questions

Gross burn is the total cash spent each month on operations (payroll, servers, rent). Net burn is gross burn minus monthly cash collected from revenue.

Windows Desktop & Widget Options