Free startup finance tool

Burn Rate Calculator

A startup burn rate calculator shows how quickly your company spends cash each month and how many months of runway remain after revenue offsets expenses. Use this cash runway calculator to measure gross burn, net burn, and the effect of different spending or sales scenarios before you run low on cash.

Current runway

13.6 mo

Based on today's inputs.

Burning each month

$39.7K

Net of monthly revenue.

Revenue to break even

$39.7K

Additional monthly revenue needed.

Inputs

Enter your startup finances

Track monthly expenses by category, then add revenue and cash on hand to see gross burn, net burn, and remaining runway.

Scenario planning

Stress test your runway

Adjust expenses and revenue to model hiring, cutbacks, or a slower sales cycle.

0%
0%

Adjusted expenses

$61,700

Adjusted revenue

$22,000

Current snapshot

Your burn and runway today

Gross burn rate

$61,700

Monthly operating expenses before revenue.

Net burn rate

$39,700

Cash lost each month after revenue.

Runway

13.6 mo

At this burn, you have 13.6 months.

Break-even target

You need $39,700 more monthly revenue to stop burning cash at the current expense level.

Scenario preview

See the runway impact before you commit

Scenario expenses

$61,700

0% vs current expenses

Scenario net burn

$39,700

0% vs current revenue

Scenario runway

13.6 mo

This scenario keeps runway roughly unchanged based on the current inputs.

Cash runway chart

Current plan vs scenario over time

This visualization assumes your monthly revenue and expenses stay flat. Use it to compare the current plan with one alternate scenario.

Current
Scenario
Cash runway over timeLine chart comparing current cash runway to the scenario-adjusted runway.$0.0$135.0K$270.0K$405.0K$540.0K0m4m9m13m17m

Cash remaining after 6 months

$301,800

Current plan projection

Cash remaining after 6 months

$301,800

Scenario projection

How to use

Use the calculator in three steps

  1. Step 1

    Enter monthly expenses

    Add your core operating costs across payroll, rent, marketing, software, and other line items to estimate gross burn.

  2. Step 2

    Add revenue and cash on hand

    Monthly revenue reduces your net burn, while your current bank balance determines how much runway you can support.

  3. Step 3

    Test a scenario

    Adjust expenses or revenue to see how hiring, cutbacks, or slower sales would change your projected runway.

FAQ

Burn rate calculator FAQs

What is burn rate for a startup?

Burn rate is the amount of cash a startup spends each month to operate. Gross burn is total monthly expenses, while net burn subtracts monthly revenue from those expenses.

How do you calculate runway?

Runway is calculated by dividing cash on hand by net burn. If your startup has $240,000 in cash and a $30,000 net burn, you have 8 months of runway.

What is a healthy startup runway?

Many early-stage teams aim for at least 12 to 18 months of runway so they have time to iterate, raise capital, or reach profitability without making rushed decisions.

What is the difference between gross burn and net burn?

Gross burn is your total monthly operating spend before revenue. Net burn is the amount of cash you actually lose each month after revenue offsets part of your expenses.

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