Burn Rate Calculator

Calculate your startup's monthly burn rate, cash runway, and zero cash date instantly. Know exactly how long your funding will last.

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What-If Scenarios

Explore how cutting expenses by 10-30% or boosting revenue by 25-100% would extend your runway. Plan for the best and worst cases.

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Frequently Asked Questions

What is burn rate?
Burn rate is the rate at which a company spends its cash reserves over a given period, usually measured monthly. Gross burn rate is your total monthly operating expenses. Net burn rate subtracts any revenue from those expenses. For example, if your startup spends $50,000/month and earns $20,000/month, your gross burn is $50,000 and your net burn is $30,000.
How do I calculate cash runway?
Cash runway equals your current cash balance divided by your monthly net burn rate. If you have $300,000 in the bank and spend $30,000 net per month, your runway is 10 months. This tells you how long your company can survive before running out of money, assuming spending stays constant.
What is a good runway length for a startup?
Most investors and advisors recommend keeping at least 12-18 months of runway. Less than 6 months is considered critical, and you should start fundraising immediately or cut costs. Between 6-12 months warrants caution. Anything above 18 months gives you breathing room to focus on growth and product development.
What is the difference between gross and net burn rate?
Gross burn rate is your total monthly expenses without factoring in revenue. Net burn rate is your gross burn minus monthly revenue. If you spend $80,000/month and earn $30,000/month, gross burn is $80,000 and net burn is $50,000. Net burn gives a more realistic picture of how fast you are depleting cash reserves.
How can I reduce my burn rate?
Common strategies include: renegotiating vendor contracts, moving to more affordable office space or going fully remote, reducing headcount or hiring freezes, cutting non-essential software subscriptions, focusing marketing spend on highest-ROI channels, and delaying non-critical product features. Use the what-if scenarios in this calculator to model the impact of different cost reduction strategies.