Gross Burn Rate
Gross burn rate is the total amount your company spends during a month before accounting for revenue.
Gross Burn Rate = Monthly Expenses
Startup Financial Planning
Burn Rate Calculator
Calculate your startup's gross burn rate, net burn rate, and cash runway. Enter your available cash, monthly expenses, and monthly revenue to understand how long your business can continue operating.
Gross and net burn rate
Cash runway estimation
Monthly financial projection
Monthly Burn Rate
$0
Estimated Runway
0 months
Available Cash
$0
Financial inputs
Enter Your Business Details
$
Total cash currently available to the business.
$
Payroll, rent, software, marketing, and other costs.
$
Average revenue generated each month.
$
Optional value used to compare actual cash reduction.
Select how many months you want to project.
Calculation results
Your Burn Rate Summary
Financial Status
Enter your financial data
Your business health summary will appear here.
Gross Burn Rate
$0
Total monthly operating expenses
Net Burn Rate
$0
Expenses minus monthly revenue
Cash Runway
0 months
Estimated time before cash reaches zero
Revenue Coverage
0%
Percentage of expenses covered by revenue
Actual Cash Burn
$0
Previous cash minus current cash
Break-Even Gap
$0
Additional monthly revenue required
Runway Strength
Not calculated
Critical
Stable
Strong
Cash flow forecast
Monthly Cash Runway Projection
Review how your available cash may change each month when revenue and expenses remain consistent.
| Month | Opening Cash | Revenue | Expenses | Net Cash Flow | Closing Cash | Status |
|---|---|---|---|---|---|---|
| Enter your financial details to generate a cash runway projection. | ||||||
Understand your numbers
What Is a Burn Rate?
Burn rate measures how quickly a business spends its available cash. It is commonly used by startups, growing companies, and investor-backed businesses that have not yet reached consistent profitability.
Net Burn Rate
Net burn rate shows the actual monthly cash loss after subtracting revenue from operating expenses.
Net Burn Rate = Expenses − Revenue
Cash Runway
Cash runway estimates how many months your business can operate before its available cash is exhausted.
Cash Runway = Cash Balance ÷ Net Burn
Simple calculation process
How the Burn Rate Calculator Works
The calculator uses your current cash, operating expenses, and revenue to estimate your monthly cash consumption and remaining runway.
01
Enter Available Cash
Add the total cash your business can currently use for operations.
02
Add Expenses and Revenue
Enter your average monthly operating costs and monthly business revenue.
03
Review Your Results
See your gross burn, net burn, runway, coverage, and monthly projection.
Practical example
Burn Rate Calculation Example
Assume a startup has $500,000 in available cash, spends $75,000 per month, and generates $25,000 in monthly revenue.
Gross burn rate
$75,000 per month
Net burn rate
$75,000 − $25,000 = $50,000
Estimated runway
$500,000 ÷ $50,000 = 10 months
10
Months
Estimated cash runway
Financial management
How to Improve Your Cash Runway
A longer runway gives your company more time to reach profitability, raise funding, or improve its business model.
Reduce Nonessential Costs
Review software subscriptions, office expenses, contractors, and marketing campaigns that are not producing measurable results.
Increase Recurring Revenue
Focus on customer retention, subscription plans, upselling, and predictable revenue streams that improve monthly cash flow.
Track Burn Every Month
Compare projected spending with actual cash movement to identify financial problems before they become difficult to manage.
Prioritize Profitable Growth
Invest in products, customer segments, and acquisition channels that generate sustainable returns instead of growth alone.
Frequently asked questions
Burn Rate Calculator FAQs
Find clear answers to common questions about startup burn rate, cash runway, and financial planning.
A good burn rate depends on the startup's cash balance, growth stage, revenue, and funding plan. The business should generally maintain enough runway to reach its next major milestone without creating unnecessary financial pressure.
Gross burn rate is your total monthly operating expense. Net burn rate subtracts monthly revenue from expenses and shows how much cash the business actually loses each month.
Divide your available cash balance by your monthly net burn rate. For example, $300,000 in cash divided by a $30,000 monthly net burn equals approximately 10 months of runway.
When revenue exceeds operating expenses, your net burn becomes zero or negative. This means the business is no longer consuming cash through normal operations and may be generating positive cash flow.
Most startups should calculate and review burn rate every month. Businesses with limited cash or rapidly changing expenses may need to monitor it weekly.
The projection assumes that monthly revenue and expenses remain constant. Actual runway may change when your hiring, pricing, customer growth, investment, or operating expenses change.
Financial Disclaimer
This Burn Rate Calculator provides estimates for planning and educational purposes. Actual business cash flow may vary because of taxes, financing, one-time expenses, delayed payments, seasonal revenue, and other financial changes.