Calculate startup burn rate, gross burn, net burn, flat and growth-adjusted cash runway, fundraising timing, and a 12-month runway sheet from cash, revenue.
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What this burn-rate planner shows Compare gross burn, net burn, revenue coverage, flat runway, growth-adjusted runway, and a month-by-month cash sheet from your current cash balance and operating numbers.
Currency display
Switch the display currency before entering cash, revenue, expenses, and runway assumptions.
Example scenarios
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%
Growth runway
17 months
Start fundraising by
Month 11
Growth-adjusted runway scenario Cash reaches zero around month 17 if these assumptions hold. With a 6-month buffer, start fundraising or cost planning by month 11.
12-month runway sheet
Month
Revenue
Net burn
Projected cash
1
$20,000.00
$30,000.00
$470,000.00
2
$20,000.00
$30,000.00
$440,000.00
3
$20,000.00
$30,000.00
$410,000.00
4
$20,000.00
$30,000.00
$380,000.00
5
$20,000.00
$30,000.00
$350,000.00
6
$20,000.00
$30,000.00
$320,000.00
7
$20,000.00
$30,000.00
$290,000.00
8
$20,000.00
$30,000.00
$260,000.00
9
$20,000.00
$30,000.00
$230,000.00
10
$20,000.00
$30,000.00
$200,000.00
11
$20,000.00
$30,000.00
$170,000.00
12
$20,000.00
$30,000.00
$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.
Why growth-adjusted runway can change the decision
A flat burn-rate calculation is useful because it is simple, but it can become misleading when revenue is growing or shrinking quickly. If monthly recurring revenue rises every month, net burn can narrow over time and the business may reach break-even before cash runs out. If revenue contracts, the cash-out month can arrive earlier than the flat runway estimate suggests.
The growth-adjusted runway scenario keeps monthly expenses constant and compounds the revenue-growth assumption month by month. That makes it a better stress test for SaaS startups, subscription businesses, agencies, and other companies where current revenue is not expected to stay flat.
Using the fundraising buffer
Founders rarely want to start fundraising when the bank balance is already close to zero. The buffer input translates the cash-out month into an earlier planning checkpoint. For example, if the scenario runs out of cash in month 17 and the buffer is 6 months, the calculator points to month 11 as the latest practical fundraising or cost-action checkpoint.
That checkpoint is not a rule by itself. A company with strong investor demand may need less time, while a company with weaker traction, enterprise sales cycles, or uncertain collections may need more. The useful question is whether the current burn rate leaves enough time to raise, cut costs, grow revenue, or reach break-even without making rushed decisions.
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. With no revenue growth, the cash-out month arrives around month 17 and a 6-month fundraising buffer points to month 11 as the planning checkpoint.
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.
What is a startup cash runway calculator?
A startup cash runway calculator estimates how many months a company can keep operating before cash runs out. The usual formula divides current cash by monthly net burn, then scenario tools can adjust the result for revenue growth, cost changes, or fundraising timing.
When should a startup start fundraising based on runway?
Many teams work backward from the cash-out month and leave a buffer for preparation, investor conversations, diligence, and closing time. This calculator lets you set that buffer directly so the output becomes a planning checkpoint rather than only a cash-out estimate.
How does monthly revenue growth affect runway?
Revenue growth reduces net burn over time if monthly expenses stay constant. If growth is strong enough, the business may reach break-even before running out of cash. Negative growth does the opposite and can shorten runway compared with the flat calculation.
Should I include one-time costs in monthly expenses?
Do not hide major one-time cash outflows inside an average unless that average is the planning choice you want to test. Large hiring, legal, tax, equipment, or severance payments should usually be modelled as separate scenarios in a detailed cash-flow forecast.
