🔥 Burn Rate & Runway Calculator

Calculate your net monthly burn rate and exactly how many months of runway your cash balance gives you.

Cash & Burn Inputs
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Ready to Calculate

Enter your numbers, then click Calculate to see results.

Burn & Runway
Net Monthly Burn
month 1
Runway
months, simple calc
Gross Burn
total monthly expenses
Projected Zero-Cash Month
based on 24-month projection
Monthly Cash Projection
MonthRevenueExpensesNet BurnEnding Balance
Projected Cash Balance (up to 24 months)
Guide

About the Burn Rate & Runway Calculator

The Burn Rate & Runway Calculator tells you two things every founder needs to track constantly: how fast you're spending cash, and how many months you have left before the balance hits zero. It goes beyond a single static snapshot by projecting your cash balance forward up to 24 months, compounding your revenue and expense growth rates each month, so you can see whether growth will outrun spending before cash runs out.

How It Works

Net Burn is your Monthly Expenses minus your Monthly Revenue — the actual cash leaving your account each month. Gross Burn is simply your total monthly expenses regardless of revenue. The simple Runway figure divides your Current Cash Balance by Net Burn for an instant estimate. The calculator then runs a month-by-month projection: each month's revenue and expenses compound by your entered growth rates, the resulting net burn is subtracted from the prior month's balance, and the first month the balance drops to zero or below is flagged as your Projected Zero-Cash Month.

Why It Matters

A single "cash ÷ burn" number can be misleading if your revenue is growing quickly — you might have far more real runway than the simple math suggests, or far less if expenses are growing faster than revenue. Projecting month by month gives you an early warning of exactly when to start fundraising, cut costs, or push harder on revenue, instead of finding out when the bank balance is already critical.

Tips for Accurate Results

  • Use your most recent 1-3 months of actuals for revenue and expenses rather than a budget or plan — burn rate should reflect reality.
  • Keep growth rate assumptions conservative; overestimating revenue growth is the most common way founders overstate their runway.
  • Re-run this calculation monthly — burn rate and runway change constantly as spending and revenue shift.
  • Start fundraising or cutting costs well before the projected zero-cash month, since raising capital typically takes 3-6 months.
Formula

How Burn Rate and Runway are Calculated

Net burn drains your cash balance every month; runway is how long that cash lasts.

Burn Rate & Runway Formula
Net Burn = Monthly Expenses − Monthly Revenue
Runway (months) = Current Cash ÷ Net Burn
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Gross vs. Net Burn

Gross Burn is total spend. Net Burn subtracts revenue — it's the number that actually determines how fast your bank balance falls.

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Runway Isn't Static

Growing revenue and rising expenses both compound monthly. A 24-month projection catches trends a single snapshot misses.

Act Before Zero

Start raising capital or cutting costs when runway drops to 6-9 months — fundraising itself takes months to close.

FAQ

Frequently Asked Questions

Common questions about burn rate and runway

What's the difference between gross burn and net burn?
Gross Burn is your total monthly expenses. Net Burn is expenses minus revenue — the actual cash draining from your bank account each month. A business can have high gross burn but low (or negative) net burn if revenue is strong.
How much runway should a startup keep?
Most investors and advisors recommend keeping at least 12-18 months of runway at all times, and starting your next fundraise when you have 6-9 months left, since raising capital itself typically takes 3-6 months.
How does revenue growth affect runway?
Compounding revenue growth can extend runway well beyond a simple cash-divided-by-burn estimate, and can even flip a business to profitable before cash runs out. That's why this calculator projects month-by-month using your revenue and expense growth rates, not just a static snapshot.
What should founders do when runway gets short?
Cut non-essential spending immediately, prioritize revenue-generating activities, extend vendor payment terms where possible, and start fundraising or seeking a bridge loan well before cash hits zero — negotiating from a position of 6+ months of runway is far stronger than negotiating with weeks left.
What is the Projected Zero-Cash Month?
It's the first month in the 24-month projection where your cumulative cash balance drops to zero or below, based on your entered revenue/expense growth rates. If the balance never crosses zero within 24 months, the calculator reports "Beyond 24 months."
What happens if my net burn is negative?
When Monthly Revenue exceeds Monthly Expenses, net burn is negative and the Runway field shows "Profitable" instead of a month count, since your cash balance is growing rather than shrinking.
Does the calculator account for one-time costs or funding rounds?
No. It projects forward using only your entered monthly revenue, expenses, and their growth rates — it doesn't model one-time expenses, equipment purchases, or future funding rounds. Re-run the calculator whenever cash in or a major one-time cost changes your starting balance.
What's a healthy burn multiple for a startup?
Burn multiple (net burn ÷ net new revenue) below 1x is considered excellent, 1-2x is healthy for early-stage growth, and above 2x is often seen as inefficient spending relative to growth. This calculator doesn't compute burn multiple directly, but you can derive it by comparing your Net Burn to month-over-month revenue gained.
How do I export my burn rate results?
Click "Export Result" below the results panel to download a plain-text summary of your Net Monthly Burn, Runway, Gross Burn, and Projected Zero-Cash Month.
What if I enter a negative growth rate?
A negative Monthly Revenue Growth or Expense Growth rate compounds downward each month in the 24-month projection, letting you model a revenue decline or planned cost cuts and see how they shift your Projected Zero-Cash Month.
Is burn rate the same as cash flow?
Not exactly. Cash flow tracks all cash movement including financing and investing activity, while burn rate as calculated here focuses specifically on the gap between operating revenue and operating expenses each month — the figure most relevant to runway.
Why does the projection table stop before 24 months sometimes?
The Monthly Cash Projection table shows rows up to your Projected Zero-Cash Month if the balance hits zero within 24 months, or up to 18 months if it doesn't, keeping the table focused on the period that matters most.

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