Finance

Burn Rate & Runway Calculator

Calculate your startup's monthly burn rate and how many months of cash runway you have left.

Cash on Hand ($)

Monthly Revenue ($)

Monthly Expenses ($)

Monthly Revenue Growth (%)

Formulas:
Gross Burn = Monthly Expenses
Net Burn = Expenses − Revenue
Runway = Cash / Net Burn (months)
Zero Cash Date = Today + Runway months

Understanding Burn Rate

Gross burn is total monthly spending. Net burn subtracts revenue, showing actual cash consumed per month. Investors focus on net burn because it shows the real drain on cash reserves.

Runway Guidelines

18+ months: Comfortable — time to experiment and iterate
12-18 months: Healthy — start planning next fundraise
6-12 months: Urgent — actively fundraising or cutting costs
<6 months: Critical — emergency measures needed

When to Fundraise

Start raising when you have 9-12 months of runway left. Fundraising typically takes 3-6 months, and you want to negotiate from a position of strength, not desperation.