Burn Rate Calculator
Calculate your average monthly burn rate from recent expenses and estimate how many months of runway your cash balance provides.
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Recent Monthly Expenses
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Results
Runway
10.4 mo
Average Monthly Burn Rate
$48,000.00
How the Burn Rate Calculator Works
Enter your starting cash balance and your recent monthly expenses (add a row per month for a more accurate average, or just one row for a quick estimate). The calculator averages those expenses into a monthly burn rate, then divides your cash balance by that burn rate to estimate your runway — how many months until the cash runs out at the current spending pace.
Example
With a $500,000 cash balance and monthly expenses of $45,000, $48,000, and $51,000 over the last three months, the average burn rate is $48,000/month. Runway is 500,000 ÷ 48,000 ≈ 10.4 months.
Common Use Cases
- Estimating how long a startup's cash reserves will last at the current spending rate.
- Deciding when to start the next fundraising round based on remaining runway.
- Tracking whether recent cost-cutting has actually lowered the monthly burn rate.
- Comparing runway scenarios under different projected spending levels.
FAQs
What is the difference between gross and net burn rate?
Gross burn rate is total monthly operating expenses. Net burn rate subtracts any monthly revenue from that figure. This calculator computes gross burn from the expense figures you enter — if you want net burn, subtract your monthly revenue from each month's expenses before entering them.
Why average several months instead of using just one?
Monthly expenses often fluctuate due to one-off costs or timing of payments. Averaging several recent months smooths out those bumps and gives a more realistic ongoing burn rate than any single month might show.
How much runway should a startup aim to keep?
Many investors and operators suggest keeping at least 12-18 months of runway, giving enough time to hit milestones and raise a next round comfortably rather than fundraising under time pressure. Your ideal target depends on your stage, growth trajectory, and how quickly you could raise more capital.