Burn Rate Calculator

Our burn rate calculator helps startup founders understand their financial runway. By entering your current cash balance, monthly revenue, and monthly expenses, you can instantly see how long your startup can operate before running out of money.

How to Use This Burn Rate Calculator

Using the calculator is straightforward:

• Enter your current cash balance from your bank account
• Enter your average monthly revenue over the past 3-6 months
• Enter your average monthly expenses including salaries, rent, and operations
• Review your net burn rate and runway immediately

Gross vs. Net Burn Rate Explained

There are two types of burn rate to understand. Gross burn rate is simply your total monthly expenses. Net burn rate is more important—it is your expenses minus your revenue. If you have revenue, your net burn is lower than your gross burn. A profitable startup has a negative burn rate, meaning it generates more cash than it spends.

Startup Burn Rate Calculator

Use our cash burn rate calculator to track your startup financial health. Investors will always ask about your burn rate during fundraising, so knowing your exact numbers is crucial. This calculator gives you instant visibility into whether you need to raise capital or can continue with your current spending rate.

How Many Months of Runway Should a Startup Have?

Most investors expect startups to have 12-18 months of runway at all times. This gives you time to hit milestones, demonstrate traction, and raise your next round without pressure. If you have less than 6 months of runway, you are in the danger zone and should focus on either reducing burn or accelerating fundraising.

• 12-18 months — Ideal runway for fundraising
• 6-12 months — Start preparing for fundraising
• Under 6 months — Critical—reduce burn or raise immediately

Calculate Your Runway Today

Use our free burn rate calculator to understand your startup financial position. Regular monitoring of your burn rate helps you make better decisions about spending, hiring, and fundraising. Know your numbers, and you will be better prepared for the challenges of building a company.