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Burn Rate Calculator

Calculate monthly burn rate, runway, and cash flow metrics to manage startup finances and plan fundraising.
What This Calculator Helps You Do
Use the inputs below to test scenarios, compare outcomes, and interpret the result before acting on it.

Burn Rate Calculator is designed to give you a fast answer, but it also provides supporting context such as formulas, worked examples, FAQs, and charts so the result is easier to validate.

For the best result, use realistic input values, review the assumptions in the explanation panels, and compare multiple scenarios if you are planning a decision based on the output.

Decision Context
Page-specific guidance for using this result in a real planning decision.

Use this page to estimate how quickly cash is being consumed and how much runway remains under current spending assumptions.

It is useful for startups, projects, or business units that need a simple operating-cash warning system before budgets become urgent.

The most important output is runway under several spend scenarios, because current burn rarely stays flat once hiring, revenue delays, or strategic changes occur.

Calculator
Enter your values

Bank balance + reserves

All costs: salaries, rent, marketing, etc.

Recurring revenue (enter 0 if pre-revenue)

Analysis
Interpretation of the current calculator output

Enter values to see detailed analysis and insights.

How to Use

Step-by-step instructions
  1. 1Enter total cash available (bank balance + reserves)
  2. 2Input total monthly expenses (salaries, rent, costs, etc.)
  3. 3Add monthly revenue (if any)
  4. 4Review net burn rate and cash runway
  5. 5Runway >12 months is healthy, <6 months needs urgent attention

Burn Rate & Runway

Burn rate measures how fast a company spends cash. Runway shows how many months until cash runs out at current burn rate.
Net Burn Rate = Monthly Expenses - Monthly Revenue Runway = Total Cash ÷ Net Burn Rate

Variables:

Net Burn RateMonthly cash consumption
RunwayMonths of cash remaining
Monthly ExpensesTotal monthly costs
Monthly RevenueMonthly income

Example

Startup Cash Management

Inputs:

Total Cash:$500,000
Monthly Expenses:$50,000
Monthly Revenue:$30,000

Steps:

  1. 1.Net Burn Rate = $50,000 - $30,000 = $20,000/month
  2. 2.Runway = $500,000 ÷ $20,000 = 25 months
  3. 3.Status: Healthy (>12 months)
  4. 4.Revenue covers 60% of expenses
Result:
$20,000 monthly burn rate with 25 months runway

Frequently Asked Questions

What's a healthy runway?

18+ months is excellent, 12-18 months is healthy, 6-12 months needs planning, <6 months is critical. Most VCs want to see 12+ months runway before investing.

How do I reduce burn rate?

Cut non-essential expenses, negotiate vendor terms, reduce headcount, delay hiring, switch to cheaper alternatives, increase revenue, or raise prices.

When should I raise funding?

Start fundraising when you have 9-12 months runway. Raising takes 3-6 months typically. Never wait until you have <6 months or you'll be desperate and get bad terms.
In-depth guideBrowse Financial calculators
Burn Rate Calculator Guide
Detailed usage notes, assumptions, mistakes to avoid, and related tools.

Burn Rate Calculator helps turn the available inputs into a result that is easier to check, compare, and explain. Calculate monthly burn rate, runway, and cash flow metrics to manage startup finances and plan fundraising.

Use this page as part of the broader financial workflow when you need a repeatable calculation instead of a one-off estimate.

Formula And Variables
How the calculator turns inputs into an answer.

Burn Rate & Runway is the main method behind this calculator. The equation is Net Burn Rate = Monthly Expenses - Monthly Revenue Runway = Total Cash ÷ Net Burn Rate, and the calculator applies it consistently as you change the inputs.

The most important variables are: Net Burn Rate is monthly cash consumption, Runway is months of cash remaining, Monthly Expenses is total monthly costs, Monthly Revenue is monthly income. Check those values first if the output looks higher or lower than expected.

How To Use The Result
What to compare before acting on the output.

The worked example on this page uses Total Cash = $500,000, Monthly Expenses = $50,000, Monthly Revenue = $30,000 and produces $20,000 monthly burn rate with 25 months runway. Use that example as a quick check for the calculation flow before entering your own values.

For practical use, read the burn rate calculator result as a decision-support number. It is strongest when you compare two or more scenarios using the same units and assumptions.

Data Visualization And Analysis
Different chart views answer different questions about the same calculator output.

Best ways to read the charts

Use a bar chart when you need to compare separate result components, a line or area chart when the output changes across steps or time, and a pie-style distribution when every value is part of one total.

When the page shows multiple chart tabs, start with the overview, then check the ranking view to see which value drives the result most strongly.

What the analysis should tell you

Compare the average, range, highest value, lowest value, and dominant contributor before making a conclusion from the main number alone.

If one value contributes most of the total, test that assumption first. If values are spread evenly, the result is usually driven by the full input set rather than a single outlier.

Common Mistakes
  • Do not mix units unless the calculator explicitly converts them for you.
  • Avoid copying a result without checking whether the inputs describe the same time period, measurement system, or scenario.
  • If the answer looks surprising, change one input at a time so you can identify which assumption is driving the output.
When The Result May Be Inaccurate

The result can be inaccurate if inputs use mixed units, rounded source data, outdated rates, or assumptions that do not match the situation being modeled.

Run a second scenario with conservative inputs when the output will affect a purchase, project, health decision, academic answer, or financial plan.

Burn Rate Calculator is an educational planning tool. It should not replace advice from a qualified professional who can review the full context and current rules.

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Additional Questions

How accurate is Burn Rate Calculator?

Burn Rate Calculator is accurate for the formula and inputs shown on the page. Real-world accuracy depends on whether the values you enter are complete, current, and measured in the expected units.

What should I check before using the burn rate calculator result?

Check the input units, review the formula section, compare the worked example, and run at least one alternate scenario if the result will support a decision.