Burn Rate Calculator
Calculate gross and net burn, and how long your cash will last.
What the Burn Rate Calculator does
Burn rate is how fast a company consumes cash. Gross burn is total monthly spending; net burn subtracts revenue. Runway is how many months of net burn your cash covers — the single most important number for an unprofitable business.
Formula
Gross burn = Monthly expensesNet burn = Monthly expenses − Monthly revenueRunway = Cash ÷ Net burn (adjusted for growth in both)
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Cash in the bank | selected currency | Yes | Accepts more than 0. |
| Monthly expenses | selected currency | Yes | Accepts more than 0. |
| Monthly revenue | selected currency | Optional | Accepts 0 or more. |
| Monthly revenue growth | % | Optional | — |
| Monthly expense growth | % | Optional | — |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Cash in the bank and Monthly expenses.
- Optionally add Monthly revenue, Monthly revenue growth and Monthly expense growth.
- Select Calculate.
Worked example
$900,000 in the bank, $145,000 monthly expenses, $62,000 revenue growing 8% a month.
- Cash
- 900000
- Expenses
- 145000
- Revenue
- 62000
- Revenue growth
- 8
Net burn $83,000 today, but growing revenue extends runway well beyond the naive 10.8 months.
Frequently asked questions
What does "default alive" mean?
Paul Graham's term for a startup that reaches profitability on its current growth trajectory before the money runs out — without needing to raise again.
How much runway should I keep?
At least 18 months after a raise. Below six months, fundraising leverage collapses and you negotiate from weakness.