Burn Rate Calculator
Results are estimates based on the values you enter. Recheck your inputs and assumptions before using the output for decisions.
Calculate gross burn, net burn, and cash runway from current cash, monthly expenses, and monthly revenue.
Burn Rate Calculator
Free online burn rate calculator to measure how quickly a business is using cash and how many months of runway remain before the current cash balance is exhausted. This calculator is useful for startup founders, CFOs, finance teams, investors, business owners, and operators who want a quick view of monthly cash pressure. Burn rate is one of the most important planning metrics for early-stage and growth businesses because it shows whether the business can continue operating at its current pace without raising more capital or increasing revenue.
The calculator works with current cash balance, monthly operating expenses, and monthly revenue. From those numbers, it calculates gross burn rate, net burn rate, runway in months, and projected cash after six months. Gross burn rate is the total monthly operating spend before revenue is considered. Net burn rate is the monthly cash loss after subtracting revenue from expenses. Runway tells you how long existing cash can support the business if the current net burn continues. These values are useful for budgeting, funding plans, hiring decisions, and investor reporting.
The formula of burn rate
Gross burn rate = Monthly operating expenses
Net burn rate = Monthly operating expenses – Monthly revenue
Runway (months) = Current cash balance / Net burn rate
Cash after 6 months = Current cash balance – (Net burn rate x 6)
Here current cash balance means the cash currently available to operate the business, monthly operating expenses means the total monthly business spend, and monthly revenue means incoming monthly revenue. If net burn rate is positive, the business is losing cash each month. If net burn rate is zero or negative, the business is at break-even or generating positive monthly cash flow.
Solved Example
Example 1: Find the burn rate and runway if current cash balance is $250,000, monthly operating expenses are $60,000, and monthly revenue is $25,000.
Solve: Gross burn rate = $60,000
Net burn rate = 60000 – 25000 = $35,000
Runway = 250000 / 35000 = 7.14 months
Cash after 6 months = 250000 – (35000 x 6) = 250000 – 210000 = $40,000
Example 2: Find the result if current cash is $120,000, monthly expenses are $30,000, and monthly revenue is $18,000.
Solve: Gross burn rate = $30,000
Net burn rate = 30000 – 18000 = $12,000
Runway = 120000 / 12000 = 10 months
Cash after 6 months = 120000 – (12000 x 6) = $48,000
Example 3: Find the result if current cash is $500,000, monthly expenses are $90,000, and monthly revenue is $70,000.
Solve: Gross burn rate = $90,000
Net burn rate = 90000 – 70000 = $20,000
Runway = 500000 / 20000 = 25 months
Cash after 6 months = 500000 – (20000 x 6) = $380,000
Table of burn rate calculator
| Cash Balance | Monthly Expenses | Monthly Revenue | Gross Burn | Net Burn | Runway |
|---|---|---|---|---|---|
| $120,000 | $30,000 | $18,000 | $30,000 | $12,000 | 10.00 months |
| $250,000 | $60,000 | $25,000 | $60,000 | $35,000 | 7.14 months |
| $500,000 | $90,000 | $70,000 | $90,000 | $20,000 | 25.00 months |
| $800,000 | $140,000 | $100,000 | $140,000 | $40,000 | 20.00 months |
How to use this burn rate calculator
Enter the current cash balance in the proper input field. After that, enter monthly operating expenses and monthly revenue. Then click the calculate button. The calculator will show the gross burn rate, net burn rate, runway in months, and estimated cash remaining after six months. Make sure all figures use the same monthly basis so the result stays meaningful.
This calculator is useful when planning fundraising timing, expense control, hiring pace, and operating targets. If net burn is high and runway is short, the business may need to reduce spending, increase revenue, or raise capital sooner. If net burn is low and runway is long, the business may have more time to execute its growth plan. Comparing burn rate over time also helps show whether the company is becoming more efficient or more cash intensive.
When using the result, remember that burn rate is a planning tool, not a complete cash flow model. Real businesses may face irregular payments, one-time costs, debt service, capital expenditures, or seasonal revenue changes. Even so, burn rate remains one of the clearest ways to understand financial pressure and runway. This calculator gives a quick numerical view that supports investor updates, internal budgeting, and better operating decisions.