Burn Rate Calculator Track Your Startup’s Cash Runway
⚡ Free burn rate calculator — know exactly when you’ll run out of cash
Calculate your monthly burn rate, cash runway, and burn multiple in seconds. See if you have 6 months of runway—or need to take action now.
“This calculator showed us we had only 4 months of runway left. We cut non-essential costs immediately and extended to 10 months. Could have been a disaster.”
Burn Rate Calculator
🔥 Burn Rate Analysis
⏱️ Cash Runway
📊 Runway Health Gauge
🚨 Recommended Actions
- 1 Your runway is critical – take immediate action
- 2 Review and cut non-essential expenses
- 3 Consider immediate fundraising
- 4 Focus on increasing revenue
📥 Download Burn Rate Template
Get the Excel template with 12-month runway projection and expense tracking.
Includes: Burn rate tracking, runway calculator, expense categories
How to Calculate & Manage Your Burn Rate
Calculate Gross Burn
Add up all your monthly expenses: salaries, software, marketing, rent, and other operating costs. This is your gross burn rate – total cash going out.
Calculate Net Burn
Subtract your monthly revenue from gross burn. Net burn is the actual cash you’re losing each month. If revenue > expenses, you’re profitable!
Calculate Runway
Divide your current cash balance by net burn. Result = months until you run out of cash. Aim for 12-18 months minimum.
Take Action
If runway < 6 months: cut costs, raise prices, or start fundraising immediately. Don't wait - runway disappears faster than you think.
Frequently Asked Questions
Gross burn is your total monthly expenses (all cash going out). Net burn is gross burn minus monthly revenue – it’s the actual cash you’re losing each month. If you’re profitable, net burn is negative (you’re adding cash).
For bootstrapped startups, aim for 12-18 months of runway. This gives you enough time to hit milestones and raise funds if needed. If you’re below 6 months, you’re in the danger zone and need immediate action.
Burn multiple = net burn / new revenue added. < 1x is excellent (efficient growth), 1-2x is good, 2-3x is concerning, > 3x is dangerous. It measures how efficiently you’re turning cash into growth.
Calculate your burn rate monthly when you close your books. Track trends – is burn increasing faster than revenue? This early warning system prevents cash crises.
Start with non-essential: software subscriptions, office perks, marketing with poor ROI, consultants. Preserve headcount and core product development. Every dollar saved extends runway.