Burn Rate Calculator

Calculate how quickly your company is spending its cash reserves and estimate your remaining 'runway'.

Cash Flow Period

Starting Cash Balance

Ending Cash Balance

Period Length (Months)

High burn rates without revenue growth are the #1 cause of startup failure.

Runway Forecast

Monthly Burn Rate$10,000

Cash Runway (Months)7.0

Remaining Monthly Cash

Overview

Calculate how quickly your company is spending its cash reserves and estimate your remaining 'runway'.

💡

Pro Tips

What is Burn Rate?: Burn rate is the rate at which a company loses money. It is usually expressed in monthly terms. 'Gross Burn' is total spending, while 'Net Burn' is spending minus revenue.
What is 'Runway'?: Runway is the amount of time a company has before it runs out of money, assuming the burn rate and revenue stay the same. Runway = Total Cash / Monthly Burn Rate.
How can I improve my burn rate?: You can reduce your burn rate by cutting non-essential expenses (fixed or variable), increasing revenue, or renegotiating vendor contracts.

Fun Facts

"Many Silicon Valley startups operate with high burn rates for years, prioritizing growth and market share over immediate profit."
"A healthy runway is typically considered 12 to 18 months, giving enough time to reach profitability or raise the next round."
"The term 'burn rate' originates from the amount of fuel a rocket burns to reach orbit."

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Burn Rate Calculator

Calculate how quickly your company is spending its cash reserves and estimate your remaining 'runway'.

Cash Flow Period

Starting Cash Balance

Ending Cash Balance

Period Length (Months)

High burn rates without revenue growth are the #1 cause of startup failure.

Runway Forecast

Monthly Burn Rate$10,000

Cash Runway (Months)7.0

Remaining Monthly Cash

Overview

Calculate how quickly your company is spending its cash reserves and estimate your remaining 'runway'.

💡

Pro Tips

What is Burn Rate?: Burn rate is the rate at which a company loses money. It is usually expressed in monthly terms. 'Gross Burn' is total spending, while 'Net Burn' is spending minus revenue.
What is 'Runway'?: Runway is the amount of time a company has before it runs out of money, assuming the burn rate and revenue stay the same. Runway = Total Cash / Monthly Burn Rate.
How can I improve my burn rate?: You can reduce your burn rate by cutting non-essential expenses (fixed or variable), increasing revenue, or renegotiating vendor contracts.

Fun Facts

"Many Silicon Valley startups operate with high burn rates for years, prioritizing growth and market share over immediate profit."
"A healthy runway is typically considered 12 to 18 months, giving enough time to reach profitability or raise the next round."
"The term 'burn rate' originates from the amount of fuel a rocket burns to reach orbit."

Used with this

Similar tools that might be useful

AFFO Calculator

Calculate Adjusted Funds From Operations (AFFO), a key performance metric for Real Estate Investment Trusts (REITs).

AFN (Additional Funds Needed) Calculator

Determine the amount of external funding a business needs to support a projected increase in sales.

ARV Calculator (House Flipping)

Calculate After Repair Value and determine the maximum offer price using the 70% rule for real estate investors.