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Burn Rate Calculator

Calculate gross and net burn and your runway in months.

Best for: Use it to plan fundraising, decide when to cut costs, or know your deadline to reach profitability.

Complete guide
Why this result happened View assumptions
Currency / Country:

Input

Result

Estimate

Gross burn

₹8,00,000/mo

Net burn
₹5,00,000/mo
Runway
20.0 months
Standard formula Private — runs in your browser, no account

What to do next

Next: Startup Valuation Calculator
Most users next calculate
Runway CalculatorCAC Calculator
More about this result
Result quality
Type
Projection
Method
Assumption-based projection
Confidence
Indicative

A forward-looking projection based on assumptions (rates, returns, time); actual outcomes will differ.

What this means

Net burn is how much cash you lose each month; runway is how many months until you run out at that rate. If revenue exceeds expenses, net burn is negative — you are profitable and runway is effectively unlimited.

What impacts this result most?
  1. 1.
    Monthly expensesHigh impact

    The main driver of cash outflow.

  2. 2.
    Monthly revenueHigh impact

    Offsets spend to give net burn.

  3. 3.
    Cash balanceMedium impact

    Sets how long the burn can continue.

How to improve this result
  • Cut the largest expenses
  • Grow revenue to lower net burn
3 Important insights
  • Margin (on price) and markup (on cost) are not the same.
  • Your break-even depends on fixed vs variable costs.
  • A small price increase moves profit more than a small cost cut.

Most business outcomes hinge on a couple of inputs - find the lever that moves the result most.

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How it's calculated & sources
The Burn Rate Calculator uses the standard formula for this calculation. It runs entirely in your browser, so your inputs are never uploaded. Figures are educational estimates, not professional advice — verify important decisions with a qualified expert. Last reviewed June 2026.
Key assumptions
  • Burn assumed steady
  • One-off costs distort a single month

Free & no sign-up · runs entirely in your browser. Results are estimates for general information, not professional advice — verify important decisions with a qualified expert. Last reviewed June 2026.

How it works

Net burn = expenses − revenue. Runway = cash ÷ net burn (how many months until you run out at the current rate).

Frequently asked questions

Gross vs net burn?+

Gross burn is total monthly spend; net burn subtracts revenue and is what actually depletes your cash.

Continue your journey

Where people usually head next.

🦄
Startup Valuation Calculator
Estimate a startup's valuation using a revenue multiple.
🛫
Runway Calculator
See how many months of runway your cash gives you.
🎯
CAC Calculator
Calculate your customer acquisition cost.
💎
LTV Calculator
Calculate customer lifetime value from ARPU, margin and lifespan.

Complete guide

Quick answers

Short, sourced answers to the questions people (and AI assistants) ask most.

What is Burn Rate?
A burn-rate calculator shows how fast a startup is spending its cash. Gross burn is your total monthly cash outflow; net burn is cash out minus cash in. Together with your bank balance they tell you how long the company can survive — the single most important number for an unprofitable startup.
Why does Burn Rate matter?
With your cash balance it determines your runway - how long you can operate.
How is Burn Rate calculated?
It compares monthly cash spent against monthly cash earned. The difference is your net burn, and dividing your cash balance by net burn gives your runway in months. Formula: Net burn = monthly expenses − monthly revenue; Runway = cash ÷ net burn.
What is a good burn rate?
There's no single 'good' burn, but the burn multiple (net burn \u00f7 net new ARR) is a common health check: under 1\u00d7 is excellent, 1\u20132\u00d7 is good, and above ~3\u00d7 is a warning sign. Most investors like to see 12\u201318 months of runway after a raise.
What are common burn rate mistakes?
Using accounting profit instead of real cash flow.
When should you use the Burn Rate Calculator?
Use it to plan fundraising, decide when to cut costs, or know your deadline to reach profitability.

What is the Burn Rate Calculator?

A burn-rate calculator shows how fast a startup is spending its cash. Gross burn is your total monthly cash outflow; net burn is cash out minus cash in. Together with your bank balance they tell you how long the company can survive — the single most important number for an unprofitable startup.

How the Burn Rate Calculator works

It compares monthly cash spent against monthly cash earned. The difference is your net burn, and dividing your cash balance by net burn gives your runway in months.

Net burn = monthly expenses − monthly revenue; Runway = cash ÷ net burn
  • monthly expenses — All cash spent per month
  • monthly revenue — Cash collected per month
  • cash — Current bank balance
  1. Enter your burn rate — how fast a company spends its cash each month; net burn is spending minus income.
  2. Enter your revenue — the total money a business earns from sales before any costs are subtracted.
  3. Enter your runway — the number of months a company can keep operating before it runs out of cash.
  4. Read the result, then change any input to compare scenarios instantly — the Burn Rate Calculator recalculates as you type.

Understanding the inputs

What each value means, why it matters, and a typical range — so you can fill in the calculator with confidence.

Burn Rate

How fast a company spends its cash each month; net burn is spending minus income.

Why it matters:
With your cash balance it determines your runway - how long you can operate.
Typical range:
Whatever the stage requires; lower extends runway.
How it affects results:
  • Higher: Cash runs out sooner.
  • Lower: Cash lasts longer.

Common mistake: Using gross burn (spending only) when net burn (minus revenue) is what matters.

Revenue

The total money a business earns from sales before any costs are subtracted.

Why it matters:
It is the top line - every margin and profit figure starts from revenue.
Typical range:
Varies entirely by business size.
How it affects results:
  • Higher: More to cover costs and profit, if margins hold.
  • Lower: Less to cover costs and profit.

Common mistake: Confusing revenue (sales) with profit (what is left after costs).

Runway

The number of months a company can keep operating before it runs out of cash.

Why it matters:
It is the countdown that drives fundraising and cost decisions.
Typical range:
Investors often like 12 to 18 months after a raise; under 6 is a danger zone.
How it affects results:
  • Higher: More breathing room.
  • Lower: Less time before you must raise or cut costs.

Common mistake: Assuming burn stays flat while ignoring planned hiring or one-off costs.

What impacts results most

  1. 1.
    Monthly expenses (High impact)The main driver of cash outflow.
  2. 2.
    Monthly revenue (High impact)Offsets spend to give net burn.
  3. 3.
    Cash balance (Medium impact)Sets how long the burn can continue.

Key assumptions

  • Burn assumed steady
  • One-off costs distort a single month

What's a typical value?

There's no single 'good' burn, but the burn multiple (net burn \u00f7 net new ARR) is a common health check: under 1\u00d7 is excellent, 1\u20132\u00d7 is good, and above ~3\u00d7 is a warning sign. Most investors like to see 12\u201318 months of runway after a raise.

Startup runway in months — cash on hand vs monthly burn

$10,00025 mo50 mo100 mo
$25,00010 mo20 mo40 mo
$50,0005 mo10 mo20 mo
$100,0002.5 mo5 mo10 mo

Worked example

Inputs: Monthly expenses $800,000; revenue $300,000; cash $5,000,000 Calculation: net burn = expenses − revenue; runway = cash ÷ net burn Result: net burn $500,000/month, runway 10 months What it means: Use net burn (after revenue); investors like 12–18 months after a raise.

Key terms

Gross burn:
Total cash you spend per month.
Net burn:
Cash spent minus cash earned per month.
Runway:
Months of cash left = cash \u00f7 net burn.

Common mistakes to avoid

  • Using accounting profit instead of real cash flow.
  • Letting one-off large expenses distort a single month.
  • Forgetting that revenue growth shrinks net burn and extends runway.

Compared to alternatives

Burn Rate vs Runway

How fast you spend versus how long you last.

Burn RateRunway
MeasuresCash out per monthMonths of cash left
FormulaExpenses − revenueCash ÷ net burn
LeverCut costs / grow revenueRaise or extend

Bottom line: Burn drives runway — lower net burn or raise before ~6 months remain.

Burn Rate calculator·Runway calculator

Related concepts

How Burn Rate connects to the concepts around it.

Runway:
The months a company can operate before cash runs out.
Revenue:
Total money earned from sales before any costs.

Reviewed sources & methodology

Methodology: Projection · Last reviewed June 2026.

Keywords: burn rate, runway, startup, cash.

This is an educational estimate, not financial advice. Rates, rules and figures change — verify the latest with the provider or a qualified advisor before you decide.

Sources: Burn-multiple framework (David Sacks / Craft Ventures)

Reviewed by the Free Tools Galaxy editorial team · Updated June 2026 · Calculated privately in your browser.

Frequently asked questions

Is the Burn Rate Calculator free to use?+

Yes. Every tool on Free Tools Galaxy is 100% free, runs in your browser and requires no signup.

How accurate is the Burn Rate Calculator?+

Burn Rate Calculator uses the standard burn rate formula in double-precision arithmetic, so the same inputs always produce the same result and you can verify any figure by hand. It is an educational estimate — real-world outcomes depend on your actual rates, rules and assumptions.

Do you store my inputs?+

No. The Burn Rate Calculator runs entirely in your browser. Nothing is uploaded or saved to a server.

Can I use the Burn Rate Calculator on mobile?+

Yes — the interface is fully responsive and works on phones, tablets and desktops.

What are common mistakes to avoid?+

The most frequent mistake is mixing units. Double-check your inputs use a single, consistent unit before clicking Calculate.

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🦄Startup Valuation CalculatorTop match🛫Runway CalculatorSee how many months of runway your cash gives you.🎯CAC CalculatorCalculate your customer acquisition cost.💎LTV CalculatorCalculate customer lifetime value from ARPU, margin and lifespan.📅ARR CalculatorConvert MRR into annual recurring revenue.💳MRR CalculatorCalculate monthly recurring revenue from customers and price.

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Calculate gross and net burn and your runway in months.

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