Burn Rate Calculator
Calculate your startup's burn rate and runway. Project how long your cash will last based on revenue, expenses, and growth rates.
Inputs
Results
Net Burn Rate
$35,000.00
How to Use This Calculator
- Enter cash on hand, monthly revenue, and monthly expenses.
- Set monthly revenue growth (%) and expense growth (%) rates.
- Review Net Burn Rate ($/mo), Gross Burn Rate, Runway (months), and Months to Breakeven.
- A runway under 6 months signals urgent need for fundraising or expense reduction.
How the result changes with Monthly Expenses
| Monthly Expenses | Net Burn Rate |
|---|---|
| $1,000,000.00 | $985,000.00 |
| $3,500,000.00 | $3,485,000.00 |
| $6,500,000.00 | $6,485,000.00 |
| $9,000,000.00 | $8,985,000.00 |
What each input means
- Cash on Hand
- Current total cash reserves available to fund operations.
- Monthly Revenue
- Average monthly income from all revenue sources.
- Monthly Expenses
- Total monthly operating costs (payroll, rent, software, etc.).
- Monthly Revenue Growth
- Expected month-over-month revenue growth. SaaS median is ~5-10%.
- Monthly Expense Growth
- Expected monthly increase in expenses as you scale.
How this is calculated
Formula
Net Burn Rate = Monthly Expenses - Monthly Revenue. Runway = Cash on Hand ÷ Net Burn Rate.Worked example, using the default values
- Identify Input Parameters4 parametersCash on Hand = 500000, Monthly Revenue = 15000, Monthly Expenses = 50000, Monthly Revenue Growth = 10 = 5 input(s) provided
- Calculate Net Burn RateNet Burn Rate35000 = $35,000
- Calculate Gross Burn RateGross Burn Rate50000 = $50,000
- Calculate RunwayRunway = min(runwayMonths14 = 14
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.
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