Burn Rate & Runway Calculator
Calculate your startup's monthly burn rate and cash runway — how many months until you run out of money.
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How to use this calculator
Gross burn is total expenses. Net burn subtracts revenue. Runway is how many months of cash remain at the current net burn rate. If revenue exceeds expenses, the business is cash-flow positive.
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Enter your current bank balance including all cash and cash equivalents.
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Add your average monthly revenue for the last 3 months (use 0 for pre-revenue startups).
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Enter total monthly expenses: payroll, rent, software, marketing, and all other costs.
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If runway is under 6 months, start fundraising or cut costs immediately — the ideal trigger is 12+ months.
Frequently asked questions
What is the difference between gross burn and net burn?
Gross burn is total monthly cash out — all expenses. Net burn is gross burn minus revenue. Investors care most about net burn because it reflects the true cash depletion rate. A startup with $100K gross burn and $40K revenue has a $60K net burn.
How much runway should a startup have?
The standard advice is 18–24 months of runway at all times. Fundraising typically takes 3–6 months, and you want a buffer for delays. Starting a fundraise with under 6 months of runway puts you in a weak negotiating position.
How can I extend my runway without raising?
Common levers: defer non-critical hires, renegotiate vendor contracts, cut or pause paid marketing, apply for R&D tax credits, explore revenue-based financing, or accelerate collections from customers. Every month of runway you extend is more time to reach key milestones.
Should I use gross or net burn for investor updates?
Report both. Net burn is the headline number investors track. Show gross burn separately so investors understand total operating costs. Also show the trend — is net burn increasing or decreasing month over month? A declining net burn signals growing efficiency.
Burn Rate & Runway Calculator — Startup Cash Projection
Why Runway Is the Most Important Startup Metric
Every other startup metric — growth rate, NPS, retention — is irrelevant if you run out of cash. Runway tells you how long you have to reach profitability or the next funding milestone. Most experienced founders target 18 months of runway at all times: 6 months for the fundraise process, 6 months buffer for delays, and 6 months to execute on the plan after the round closes.
Warning Signs That Your Burn Rate Is Too High
If payroll exceeds 70% of total expenses and revenue growth is flat, headcount is the problem. If marketing spend is high but CAC is rising, the channel is saturating. If burn is increasing faster than revenue, you may be scaling prematurely. The healthiest startups track net burn monthly, understand exactly which cost centres drive it, and have a clear plan to extend runway before it becomes critical.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →