Calculate your startup's burn rate, cash runway, and funding needs. Includes gross and net burn analysis, funding scenario planning, and stage-appropriate benchmarks from pre-seed to Series B+.
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Burn rate is one of the most critical metrics for startups—it determines how long your company can survive before running out of cash. Our free burn rate calculator helps you compute gross and net burn, project your cash runway, and plan funding scenarios. Whether you're a bootstrapped founder watching every dollar or a Series B company planning your next raise, understanding your burn rate is essential for survival and strategic planning. Enter your monthly expenses, revenue, and cash position to get instant insights.
Burn rate measures how quickly a company spends its cash reserves. There are two types: Gross burn rate is your total monthly operating expenses regardless of revenue. Net burn rate accounts for revenue, showing the actual cash you lose each month. For example, if you spend $100,000 per month and earn $30,000 in revenue, your gross burn is $100K and net burn is $70K. Cash runway is how long your current cash will last at your current burn rate.
Burn Rate Formulas
Gross Burn = Monthly Operating Expenses
Net Burn = Monthly Expenses - Monthly Revenue
Runway (months) = Current Cash / Net Burn RateRunway tells you exactly how many months until you run out of cash. This single metric drives critical decisions about fundraising timing, hiring, and spending.
Start raising when you have 9-12 months of runway. Fundraising typically takes 3-6 months, so starting too late puts you in a desperate position.
Tracking burn rate monthly helps you catch spending creep early and make adjustments before cash becomes critical.
Each hire increases burn rate. Understanding the runway impact helps you make informed decisions about team growth.
Investors expect founders to know their burn rate cold. It's one of the first questions in any fundraising conversation.
Net burn shows how revenue reduces cash consumption. Use it to set targets for reaching cash-flow positive.
Model how different funding amounts impact your runway to negotiate raises that give you adequate time to hit milestones.
Calculate burn rate monthly to track spending trends and catch issues early. Compare to budget and previous months.
Know your exact burn rate and runway before investor meetings. Model how much you need to raise for 18-24 months runway.
Model the runway impact of new hires including salary, benefits, equipment, and overhead before committing.
Present burn rate trends and runway projections to your board with clear plans for reaching profitability or next raise.
Recalculate runway with new cash and planned post-funding burn rate to set realistic milestones.
When fundraising becomes harder, extend runway by cutting burn. Model different cost-cutting scenarios.
There's no universal 'good' burn rate—it depends on your stage, funding, and growth goals. Pre-seed startups typically burn $15-50K/month, seed-stage $50-150K, Series A $200-500K, and Series B+ $500K-2M+. The key is having enough runway (12-18 months) and burn that's justified by growth.