Burn Rate Calculator
Calculates how fast a business is spending capital and how many months of runway remain
Total cash available right now
Total monthly operating expenses
How much cash you spend each month
How many months until cash runs out
Approximate date when cash runs out
Frequently Asked Questions
What is burn rate?
Burn rate is the speed at which a company spends its cash reserves, typically measured monthly. Gross burn rate is total monthly spending. Net burn rate subtracts any revenue, showing the actual cash drain per month.
What is runway?
Runway is how many months a company can continue operating before running out of cash, calculated by dividing the current cash balance by the monthly burn rate. A 12-month runway means the business has one year of cash left at current spending levels.
What is a healthy burn rate for a startup?
There is no universal number, but most investors look for at least 12-18 months of runway. If your runway is under 6 months, it is time to cut costs or raise funding. The right burn rate depends on growth stage and access to capital.
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