Burn Rate Calculator
Calculate gross and net burn, runway, and project cash balance with optional revenue and expense growth.
Use the Burn Rate Calculator
Enter starting cash, monthly revenue and expenses. Add optional growth to simulate runway over time.
Cash & monthly flows
Starting cash, monthly revenue and expenses. Optional growth for simulation.
Results
Gross burn
$45,000
Net burn
$15,000
Runway (months)
6.7
Runway = Starting cash ÷ Net burn. With growth, see projection below.
| Month | Cash |
|---|---|
| Start | $100,000 |
| M1 | $85,000 |
| M2 | $70,000 |
| M3 | $55,000 |
| M4 | $40,000 |
| M5 | $25,000 |
| M6 | $10,000 |
| M7 | -$5,000 |
What this metric means
Burn rate and runway tell you how long you can operate at current spending and revenue. Founders use them to plan fundraising and cost cuts.
How to improve
Reduce net burn by cutting costs or increasing revenue. Extend runway by raising cash or improving unit economics so net burn falls.
FAQs
What is gross burn?▾
Gross burn is total expenses per month (ignoring revenue). It’s the rate at which you spend cash if you had no income.
What is net burn?▾
Net burn is expenses minus revenue per month. It’s the rate at which cash shrinks (or grows, if revenue exceeds expenses).
How is runway calculated?▾
Runway = Starting cash ÷ Net burn. It’s how many months until cash runs out if net burn stays constant.
When should I use growth?▾
Use revenue and expense growth % when you expect them to change over time. The calculator then projects month-by-month cash until it runs out or you stop the simulation.
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