Burn Rate & Runway Calculator
Track how fast you are spending cash and how long you can survive
Monthly Net Burn
$0
Runway (Survival Time)
0 Months
How to use the Burn Rate Calculator
Burn Rate is the rate at which a company uses its cash reserves to cover operating expenses before generating positive cash flow. To use this tool, enter your Current Bank Balance, your Monthly Revenue, and your Monthly Expenses. The tool calculates your Net Burn (the amount you lose every month). Most importantly, it gives you your Runway—the exact number of months your business can survive at the current spending level before the bank account hits zero.
- Gross Burn vs. Net Burn: Gross Burn is just your total expenses. Net Burn (which this tool uses) is Expenses minus Revenue.
- Fundraising Timing: Investors usually want to see at least 6 months of runway. If your runway is less than 4 months, you need to raise money or cut costs immediately.
- Default Alive vs. Default Dead: If your revenue is growing faster than your burn, you are "Default Alive." If you'll run out of money before reaching profitability, you are "Default Dead."
What is a "Healthy" Burn Rate? +
It depends on your growth. If you are burning $10k a month but doubling your users every month, it might be healthy. If your growth is flat, any burn is dangerous.
How can I extend my Runway? +
You can extend runway by "Cutting the Fat" (reducing non-essential software or office costs), increasing prices, or negotiating better terms with suppliers.
Does "Revenue" include investment? +
No. For Burn Rate calculation, revenue should only be the money you earn from customers. Investment money goes into the "Starting Balance."
What is a Zero-Cash Date? +
It is the exact future date when your bank account will be empty if nothing changes. This tool helps you predict that date by showing the months remaining.
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