Calculate how quickly your company is spending its cash reserves and estimate your remaining 'runway'.
Cash Flow Period
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
About this calculator
Overview
Calculate how quickly your company is spending its cash reserves and estimate your remaining 'runway'.
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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.
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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."
