How Long Can Your Startup Last? Our Burn Rate Calculator Shows You!

As a startup founder, one of the most crucial numbers you need to know is your "burn rate." Think of it as a measure of how quickly your company is spending cash. Our handy burn rate calculator is designed to help you get a clear picture of your startup's financial runway - essentially, how much time you have left until the money runs out.

Just input a few key pieces of information - your current bank balance, average monthly revenue, and average monthly expenses - and we'll instantly tell you how many months your startup can stay in business.

Using the Calculator is Super Easy:

1. Your Current Cash Balance: Pop in the amount of cash you currently have in your bank.
2. Average Monthly Revenue: Give us your typical income over the last 3-6 months.
3. Average Monthly Expenses: List out all your costs each month (salaries, rent, software, marketing - the whole lot).

That's it! The calculator will immediately show you your net burn rate and your runway.

Gross vs. Net Burn Rate: What's the Difference?

There are two ways to look at burn rate:

• Gross Burn Rate: This is simply your total monthly expenses. All the money you're spending each month, period.
• Net Burn Rate: This is where it gets more useful. It's your expenses minus your revenue. If you're bringing in cash, your net burn will be lower than your gross burn. A profitable startup will actually have a negative* burn rate, meaning they're earning more cash than they're spending!

Know Your Startup's Financial Health

Our cash burn rate calculator is an essential tool for any founder looking to keep a close eye on their company's financial health. Why? Because investors always want to know your burn rate when you're raising capital. Having accurate numbers at your fingertips gives you the visibility you need to know whether you need to start fundraising or if you can continue at your current pace.

How Much Runway Should You Aim For?

Generally speaking, investors want to see startups with 12-18 months of runway at all times. This buffer gives you ample time to hit your business goals, show some serious traction, and raise your next round of funding without the pressure of constantly worrying about going broke.

• 12-18 months: Ideal runway. Plenty of breathing room for fundraising.
• 6-12 months: Start thinking seriously about fundraising.
• Under 6 months: Critical! You need to either drastically cut expenses or start fundraising immediately.

Calculate Your Runway Today!

Don't wait until it's too late. Use our free burn rate calculator to understand your startup's financial standing. Regularly checking your burn rate is a game-changer, helping you make smart decisions about spending, hiring, and fundraising. Knowing your numbers is half the battle of building a successful company!