What is gross burn rate?

Gross burn rate is your total monthly cash outflows — every dollar your company spends regardless of revenue. It equals all operating expenses paid in a month.

What is net burn rate?

Net burn rate is gross burn minus monthly revenue (cash received). It shows how much net cash you consume each month. If revenue exceeds expenses, net burn is negative — meaning you are cash-flow positive.

How is runway calculated?

Runway = Current cash balance ÷ Net burn rate. If net burn is zero or negative (profitable), runway is effectively infinite and the calculator will say so.

Should I use revenue or bookings?

Use cash received (collected revenue), not ARR or bookings. Runway depends on real cash, not promises. For SaaS with monthly billing, MRR collected is appropriate.

What is a healthy burn rate for a startup?

It depends on stage, but most investors want to see at least 12–18 months of runway. Early-stage startups often target 18–24 months between rounds to avoid a distressed fundraise.

What if my net burn is positive (cash-flow positive)?

If revenue exceeds expenses, net burn is zero or negative. The calculator shows "Cash-flow positive" and your runway is effectively unlimited.

Burn Rate Calculator

Name: Burn Rate Calculator
Availability: InStock
Author: Nham Vu

Enter your cash inflows, outflows, and cash balance to instantly calculate gross burn, net burn, and months of runway.

Monthly Figures

Total Monthly Expenses (Gross Burn)

All cash out: salaries, rent, software, marketing, etc.

Monthly Revenue (Cash Received)

Actual cash collected this month, not bookings or ARR.

Current Cash Balance

Total cash in bank accounts right now.

Gross Burn Rate per month

—

Total monthly cash out, before revenue.

Net Burn Rate per month

—

Cash consumed after subtracting revenue.

Runway at current net burn

—

Months until cash reaches zero.

Copied!

Summary

Enter your cash inflows, outflows, and cash balance to instantly calculate gross burn, net burn, and months of runway.

How it works

Enter your total monthly expenses (gross burn) — salaries, rent, software, and all operating costs.
Enter your monthly revenue (cash actually received, not bookings or ARR).
Enter your current cash balance in the bank.
The calculator computes gross burn, net burn, and runway in months.
Adjust the inputs to model different spending or revenue scenarios.

Use cases

Determine how many months of runway remain before raising the next round.
Report burn metrics to investors and board members each month.
Model scenarios: what happens if you cut headcount or close a key deal?
Benchmark against fundraising timelines — aim for 18–24 months of runway.
Track month-over-month burn trend to spot spending creep early.
Set a cash preservation budget when revenue growth slows.

Frequently Asked Questions

Last updated: 2026-07-01 · Reviewed by Nham Vu