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Burn Rate Calculator

Calculate gross and net monthly burn rate for a startup. Pair with cash on hand to see runway in months.

Inputs

Net burn (monthly)
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Gross burn (all expenses)
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Runway
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Monthly revenue
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Gap to break-even
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Annual net burn
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About Burn Rate Calculator

Gross vs net

Gross burn = total cash going out per month. Net burn = expenses minus revenue (money youโ€™re actually losing). Net is what matters for runway calculations.

Healthy runway

Early-stage startups should target 18-24 months runway after raising. With 12 months left, start raising immediately โ€” fundraises take 3-6 months. Below 6 months is danger zone.

Reducing burn

Top categories: salaries (largest expense usually), office rent (renegotiate or sublease), marketing spend (cut paid acquisition), tooling (audit subscriptions). Layoffs are the painful but largest lever โ€” every month of delay costs more.