Burn Rate Calculator

Calculate monthly burn rate, runway, and cash-zero date

FREE TOOL
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Tip: Enter your total cash on hand, monthly spending, and revenue. We'll calculate how many months of runway you have.
Results
Cash Runway
16.7 months
Cash hits zero around Sep 2027
  • Cash Balance$500,000
  • Gross Burn$50,000/mo
  • Revenue$20,000/mo
  • Net Burn$30,000/mo

How It Works

Know your runway in four simple steps

01

Enter your cash

Input how much cash your company currently has in the bank — your starting balance.

02

Add your expenses

Enter your total monthly spending, or switch to detailed mode to break it down by salaries, rent, marketing, and more.

03

Include revenue

Add your monthly revenue so we can calculate net burn — the real rate your cash is shrinking each month.

04

See your runway

Instantly see how many months of cash you have left, when you'll hit zero, and whether you're cash-flow positive.

Who Is It For

Essential for anyone managing cash

Whether you're pre-seed or scaling, understanding your burn rate is the foundation of financial planning.

Startup Founders

Know your runway before every board meeting and fundraise with confidence.

CFOs & Finance Leads

Model different spending scenarios and present clear cash projections to stakeholders.

Investors & Advisors

Quickly assess a portfolio company's cash position and months of runway remaining.

Small Business Owners

Track monthly cash flow to avoid surprises and plan for seasonal dips.

Use Cases

Real scenarios where runway matters

From your next fundraise to a hiring decision, burn rate drives the most critical choices startups make.

Fundraising Timing

Know exactly when to start raising — most VCs recommend beginning 6–9 months before you'd hit zero.

Cost-Cutting Decisions

Model what happens to your runway if you cut marketing by 30% or renegotiate your lease.

Hiring Planning

See how each new hire affects your burn and runway before making the offer.

Pivot Planning

Calculate whether you have enough runway to test a new direction before cash runs out.

Cash Balance$500,000
Gross Burn
-$50,000/mo
Revenue
+$20,000/mo
Cash Runway16.7 monthsCash hits zero around Sep 2027

FAQ

Frequently Asked Questions

Burn rate is how much cash your company spends per month. Gross burn is total monthly expenses. Net burn subtracts revenue, showing the real rate your cash is shrinking.
Cash runway is how many months you can operate before running out of money. It's calculated as: Cash Balance ÷ Net Burn Rate = Months of Runway.
Most investors and advisors recommend maintaining 12–18 months of runway. Below 6 months is considered a danger zone — you should be actively raising or cutting costs.
Gross burn is your total monthly expenses regardless of revenue. Net burn subtracts your revenue from expenses. If you spend $50k/month and earn $20k, your gross burn is $50k and net burn is $30k.
Revenue reduces your net burn rate and extends your runway. If your revenue exceeds expenses, your net burn is negative — meaning you're cash-flow positive and your runway is effectively infinite.
Most VCs suggest starting 6–9 months before your projected zero-cash date. Fundraising typically takes 3–6 months, so starting early gives you leverage and avoids desperation rounds.

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