Tools Burn Rate Calculator

Burn Rate Calculator

Burn rate is how much cash you consume each month. Net burn nets out revenue; gross burn is total spend. Enter your cash at the start and end of a period and your monthly revenue to get both — and how much runway your current cash buys.

Net monthly burn
$40,000
Cash lost each month.
Gross monthly burn
$60,000
Total spend before revenue.
Runway on ending cash
7.0 mo

Net burn = (start − end cash) ÷ months. Gross burn adds revenue back to show total spend.

Formula: Net burn = (Starting cash − Ending cash) ÷ Number of months
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Frequently asked

What is the difference between gross and net burn?
Gross burn is your total monthly cash spend. Net burn subtracts monthly revenue, so it reflects the cash you actually lose each month. Net burn is what determines runway.
What is a good burn rate?
There is no universal number — burn should be judged against runway and growth. The key test is whether the cash you burn is buying proportional progress toward the next milestone or raise.
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