Calculate gross burn, net burn, annual burn, and a 12-month cash runway sheet from current cash, revenue, and expenses. Use it to test different inputs quickly, compare outcomes, and understand the main factors behind the result before moving on to related tools or deeper guidance.
Last updated
What this burn-rate planner shows Compare gross burn, net burn, revenue coverage, and a 12-month cash runway sheet from your current cash balance and monthly operating numbers.
Currency display
Switch the display currency for burn and runway outputs.
Runway result
16.7 months of runway
At the current net burn of $30,000.00 per month.
Gross burn
$50,000.00
Net burn
$30,000.00
Annual net burn
$360,000.00
Revenue coverage
40%
12-month runway sheet
Month
Projected cash
1
$470,000.00
2
$440,000.00
3
$410,000.00
4
$380,000.00
5
$350,000.00
6
$320,000.00
7
$290,000.00
8
$260,000.00
9
$230,000.00
10
$200,000.00
11
$170,000.00
12
$140,000.00
Planning note Burn rate is a moving operational metric. Hiring, vendor changes, revenue slippage, or a funding event can change the runway quickly, so revisit the assumptions regularly.
Burn rate calculator: monthly burn, annual net burn, and cash runway planning
A burn rate calculator shows how quickly a business is consuming cash after revenue, how much runway remains at the current pace, and how the next several months of cash balance may look if the same expense and revenue pattern continues.
What gross burn and net burn actually mean
Gross burn rate is the total amount the business spends each month before considering revenue. Net burn rate subtracts monthly revenue from monthly expenses and shows how quickly cash is really being consumed. For runway planning, net burn is usually the more decision-useful number.
That distinction matters because two companies with the same expenses can have very different cash risk profiles if one is already generating meaningful revenue while the other is not. A useful burn-rate calculator therefore needs to show both gross and net burn, not just one headline figure.
Further reading
CFI — Burn rate — Overview of burn rate and why it matters in startup and operating cash planning.
How to read runway from the current burn rate
Runway is the current cash balance divided by the monthly net burn rate, expressed in months. If cash is 500,000 and net burn is 30,000 per month, runway is about 16.7 months. That is a useful planning shorthand, but it assumes the burn rate stays constant.
The 12-month runway sheet is there to make the same relationship easier to inspect over time. It shows how quickly the balance falls month by month, which is often easier to communicate internally than one single runway number.
Worked example: revenue slows the cash drain
Suppose a company holds 500,000 in cash, spends 50,000 each month, and brings in 20,000 in monthly revenue. Gross burn is 50,000, net burn is 30,000, annual net burn is 360,000, and runway is roughly 16.7 months.
That example shows why net burn is more informative than gross burn alone. Looking only at expenses would imply a much shorter runway than the business actually has once recurring revenue is taken into account.
What a burn-rate calculator cannot tell you by itself
This planner assumes current revenue and current expenses stay constant, which is rarely true in practice. Hiring, layoffs, vendor changes, seasonality, fundraising, or delayed receivables can move the actual runway materially.
Use the result as an operating-planning baseline, not as a guarantee. Strong cash planning still needs scenario analysis for slower revenue, faster hiring, higher costs, or a delayed funding round.
Further reading
Wikipedia — Burn rate — General reference on burn rate terminology and startup cash-consumption framing.
What is the difference between gross burn and net burn?
Gross burn is total monthly spending. Net burn subtracts monthly revenue from monthly expenses and shows how quickly cash is actually falling. Net burn is usually the more useful figure for runway planning.
Why does my runway become infinite in this calculator?
If monthly revenue matches or exceeds monthly expenses, net burn is zero or negative, so cash is not shrinking on a net basis. In that case the calculator treats runway as effectively open-ended under the current assumptions.
Should I use booked revenue or collected cash revenue?
For practical runway planning, collected or reliably recurring cash revenue is safer. If revenue timing is uncertain, using optimistic booked revenue can overstate runway.
How often should I recalculate burn rate?
Recalculate whenever expenses, staffing, revenue, or funding expectations change materially. Burn rate is an operating metric, not a fixed property of the business.
