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Financial model
- Thirty-six months
- Hiring plan
- Three-year summary
Opens in Excel, Google Sheets and Apple Numbers.
Free tools · Planning and fundraising
Free startup financial model template, from first hire to year three.
Excello's free startup financial model template is a 36-month Excel model that turns growth, churn, pricing and hiring assumptions into revenue, costs, cash, runway and a three-year summary.
Change the blue assumptions and every sheet updates. The example is a subscription startup raising in month 13.
Free. No sign-up. Opens in Excel and Google Sheets.
- Template
- Horizon 36 months
- Sheets five
- Format Excel
- Price free
Download the startup financial model template, Excel and free
The workbook
The example inside the template
A worked model
The template ships with an illustrative subscription startup. These are its assumptions and the results the model calculates from them.
| Assumption | Value |
|---|---|
| Starting cash | $1,000,000 |
| Customers at the start | 20 |
| New customers | five in month 1, growing 5% a month |
| Monthly customer churn | 2% |
| Revenue per customer per month | $500 |
| Gross margin | 80% |
| Payroll taxes and benefits | 20% of salary |
| Marketing | 15% of revenue, at least $5,000 a month |
| Funding | $3,000,000 in month 13 |
| Measure | Year one | Year two | Year three |
|---|---|---|---|
| Revenue | $325,635 | $859,073 | $1,758,002 |
| Operating profit (EBITDA) | −$488,929 | −$680,603 | −$431,398 |
| Customers at year-end | 88 | 199 | 389 |
| Headcount at year-end | 6 | 9 | 10 |
| Annual recurring revenue at year-end | $527,512 | $1,192,173 | $2,333,101 |
| Cash at year-end | $511,071 | $2,830,468 | $2,399,070 |
Figures are illustrative and calculated by the template's own formulas. The example raises funding in month 13, which is why cash rises in the second year.
Source: the illustrative example built into Excello's startup financial model template
What is a startup financial model?
The basics
Using a financial model template for startup planning
Six steps
Start with the drivers
Customers, growth, churn and price produce revenue. Write each one down as a separate assumption.
Plan the hires
List each role with a start month and salary. Payroll is usually most of a startup's costs.
Add the other costs
Cost of revenue, marketing, software, rent and everything else, as fixed amounts or percentages.
Turn profit into cash
Add funding, then follow the cash balance month by month to see burn and runway.
Summarize by year
Investors read revenue, operating profit, customers, headcount and cash for three years first.
Test a downside
Lower growth or higher churn. If the runway still reaches your next raise, the plan is sturdier.
The drivers that move the model most
Sense checks
Whether you run a SaaS company or use it as a financial model for tech startup template planning more broadly, these six assumptions do most of the work.
| Driver | What it changes | Sense check |
|---|---|---|
| Growth in new customers | Revenue and every cost tied to revenue | Is it in line with your pipeline and marketing spend? |
| Churn | How many customers you keep | Does it match what your customers actually do today? |
| Revenue per customer | Revenue and annual recurring revenue | Is it your real average, after discounts? |
| Gross margin | How much of each sale pays for the team | Does it include hosting, payment fees and support? |
| Hiring plan | Payroll, software costs and burn | Is each hire tied to a revenue or product milestone? |
| Funding timing | Cash and runway | Does the cash last until the round can realistically close? |
Financial modelling tools for startups
Choosing
Models get better with real numbers
Where Excello fits
Frequently asked questions
What is a startup financial model?
A startup financial model is a spreadsheet that turns assumptions about growth, pricing, hiring and costs into projected revenue, profit, cash and runway. Founders use it to plan spending and to show investors how the business could grow.
What should a startup financial model include?
Revenue drivers such as customers, growth, churn and price, a hiring plan, operating costs, and a cash forecast with burn and runway. Most investors also want a simple annual summary covering three years.
How many years should a startup financial model cover?
Three years is the usual length for early-stage startups, built monthly so cash and runway are visible. Beyond that, the assumptions become guesses, so later years are best kept to an annual outline.
What is the difference between a financial model and a budget?
A financial model explores what could happen under different assumptions. A budget commits to a plan for the coming year, which you then compare with actual results each month.
Is there a startup financial model .xls version?
The template is an .xlsx file, the format every current version of Excel, Google Sheets and Apple Numbers opens. Older software that only reads .xls can usually convert the file when it opens.
Is this startup financial model template free?
Yes. The Excel template is free to download and use, with no sign-up needed. It includes assumptions, a hiring plan, a 36-month model and an annual summary, all linked by formulas.