Headcount converts a cash balance into a commitment.
A headcount decision changes the monthly cost base from the start date onward. Recruiting and setup costs may be paid sooner. This model explicitly deducts those costs today and applies the larger burn only after the delay.
If cash runs out before the hires start, the later cost base is irrelevant to the cash-out estimate. This boundary matters when a plan assumes future hiring that existing liquidity cannot support.
The formula, made clear.
- New burn
- Current monthly burn plus hires × loaded monthly cost.
- Total runway
- Delay plus remaining runway, unless cash is exhausted before the start.
Put the numbers in context.
Three hires at $10,000.00 monthly cost lift burn from $60,000.00 to $90,000.00. After $15,000.00 upfront cost and three months of existing burn, $1,005,000.00 remains at their start.
| Input | Example value |
|---|---|
| Available cash | $1,200,000.00 |
| Current monthly net burn | $60,000.00 |
| New hires | 3 people |
| Loaded monthly cost per hire | $10,000.00 |
| Upfront cost per hire | $5,000.00 |
| Months until start | 3 months |
| Runway with planned hires | 14.17 months |
What this calculation assumes
All hires start together; setup costs are paid immediately. No incremental revenue, staggered ramp, severance or financing. Fractional delay months represent a continuous cash approximation.
What to consider next.
Use a cash forecast for staggered hiring. A sales-capacity scenario can help quantify the revenue assumption separately.
How we approach financial models →