Burn Rate Calculator

Calculate your startup's burn rate and runway. Understand how long your cash will last and when to raise funds.

Total cash and cash equivalents

Average monthly revenue

Total monthly operating costs

Month-over-month revenue growth

Gross Burn Rate = Monthly Expenses\nNet Burn Rate = Monthly Expenses - Monthly Revenue\nRunway (months) = Cash Balance / Net Burn Rate\nDaily Burn = Net Burn Rate / 30\nProfit Margin = (Revenue - Expenses) / Revenue * 100
Example:\nCash Balance: $300,000\nMonthly Revenue: $20,000\nMonthly Expenses: $50,000\nGrowth Rate: 10%/month\n\nGross Burn: $50,000/month\nNet Burn: $50,000 - $20,000 = $30,000/month\nRunway: $300,000 / $30,000 = 10 months\nDaily Burn: $30,000 / 30 = $1,000/day\n\nStatus: WARNING Warning (need 12+ months)\nAction: Start fundraising or cut costs

What is burn rate?

Burn rate is the rate at which a company spends its cash reserves, typically measured monthly. Gross burn rate = total monthly expenses. Net burn rate = monthly expenses - monthly revenue. For example, spending $50k/month with $20k revenue = $30k net burn rate.

What is a good burn rate?

Good burn rate depends on stage and runway. Startups: aim for 12-18 months runway minimum. Pre-revenue: focus on extending runway. Post-revenue: aim for profitability or sustainable growth. Rule of thumb: burn rate should decrease as revenue grows. Investors want improving unit economics.

How do I calculate runway?

Runway = Cash Balance / Net Burn Rate. Example: $300k cash, $30k monthly net burn = 10 months runway. This tells you how long until you run out of money. Aim for 12+ months. At 6 months, urgently raise funds or cut costs.

How can I reduce my burn rate?

Cut unnecessary expenses: reduce marketing spend, renegotiate contracts, delay non-essential hiring. Increase revenue: focus on sales, improve conversion, raise prices. Optimize operations: automate processes, outsource vs hire, switch to variable costs. Track metrics weekly.

What is the Rule of 40?

Rule of 40: Growth Rate + Profit Margin should >= 40%. Example: 50% growth + (-10%) margin = 40%. SaaS benchmark for balancing growth and profitability. Below 40% may indicate inefficient growth. Above 40% is strong performance. Adjust burn rate to hit target.