Work out your monthly net burn and how many months of cash runway you have left.
Please do not make financial decisions based on these results.
What is the Burn Rate Calculator?
Work out your monthly net burn and how many months of cash runway you have left. To use the Burn Rate Calculator, enter cash on hand, monthly revenue, monthly expenses; it returns net monthly burn, cash runway, gross burn (expenses only), zero-cash date (months from now), and shows them instantly as you type.
Where the Burn Rate Calculator fits
Work out your monthly net burn and how many months of cash runway you have left. The main figure it returns is the Net monthly burn, worked out from the values you enter.
It belongs with the other business planning tools. If you are comparing options or checking a result from another angle, try the Days Off Calculator, Effective Corporate Tax Rate Calculator or the Liquid Net Worth Calculator.
How to use the Burn Rate Calculator
- Fill in the fields. You will need Cash on hand ($), Monthly revenue ($), Monthly expenses ($). Use figures from the same period (same month, quarter or year) for every field. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Net monthly burn, and the cards below show Cash runway, Gross burn (expenses only), Zero-cash date (months from now). Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Burn Rate Calculator using the default values shown in the calculator above:
Inputs
| Cash on hand ($) | 250,000 |
|---|---|
| Monthly revenue ($) | 20,000 |
| Monthly expenses ($) | 65,000 |
Results
| Net monthly burn | $45,000.00 |
|---|---|
| Cash runway | 5.6 months |
| Gross burn (expenses only) | $65,000.00 |
| Zero-cash date (months from now) | 6 |
With these inputs the calculator returns Net monthly burn: $45,000.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Cash on hand ($) from 250,000 to 300,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Net monthly burn | $45,000.00 | $45,000.00 | 0% |
| Cash runway | 5.6 months | 6.7 months | +20% |
| Gross burn (expenses only) | $65,000.00 | $65,000.00 | 0% |
| Zero-cash date (months from now) | 6 | 7 | +16.7% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Burn Rate Calculator reports Net monthly burn, cash runway, gross burn (expenses only) and zero-cash date (months from now). Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is a healthy runway?
Most startups plan for at least 18 months of runway so there is time to raise money or reach profitability.
Can I use these for a business plan?
Yes. They give quick estimates for break-even, valuation, budgets and project returns. Confirm important figures with your accountant before relying on them.
Are the results forecasts?
No. They apply the formula shown to the numbers you enter, so the output is only as realistic as your assumptions.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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