A worked example

Runway on a raise

Alex, 34, just closed $500k for their company. Revenue is $8k/month against $25k/month of spend, and they pay themselves $48k a year.

“When does the business run out of cash on this plan, and what does adding a $180k fully-loaded hire do to that date?”

What the projection shows

Runway in months for each plan, the first year the household itself comes up short, the tax picture of the owner's draw, and one-tap sensitivity on revenue growth, spending and the hire. It also shows what the burn is worth later. Losses carry forward under §172 and never expire, so the years after the burn are taxed much more lightly than the raise alone would suggest, and a Roth conversion in a losing year is the cheapest one Alex will ever do.