Burn Rate Calculator
Calculate a startup’s net and gross monthly burn rate from cash balances and revenue, and the runway it implies.
Your inputs
Results
Net burn per month
$20,000.00
- Gross burn per month (spending)
- $30,000.00
- Runway at this net burn
- 19 months
✓Exact calculation — rounded only for display
What this calculator does
Burn rate is how fast a company spends its cash. Net burn subtracts revenue; gross burn is total monthly spending.
Formula and method
Worked example
Calculated by this tool with its default inputs:
Inputs
- Cash at start of period: 500000 (any currency)
- Cash at end of period: 380000 (any currency)
- Months in period: 6
- Average monthly revenue: 10000 (any currency)
Results
- Net burn per month: 20,000
- Gross burn per month (spending): 30,000
- Runway at this net burn: 19 months
How to read the results
Track net burn monthly; rising burn without rising revenue shortens runway quickly.
Assumptions and limitations
- One-off inflows such as fundraising should be excluded from the cash change.
Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.
Questions
Gross or net burn — which matters more?
Net burn determines runway; gross burn shows the cost base.
Methodology and verification
- Result type
- Exact mathematical calculation (rounded only for display)
- Formula version
- 1.0
- Automated verification
- 3 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
- Editorial review
- Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.
Privacy
Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy