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Burn Rate Calculator

Calculate monthly burn rate, runway, and cash flow metrics to manage startup finances and plan fundraising.
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.