Calculate your startup’s monthly burn rate from revenue and major operating expenses. This tool separates gross burn, net burn, revenue coverage, and cost risk so founders can manage cash before it becomes urgent.
Enter monthly revenue and major expense categories. Payroll should include salary, benefits, contractors, and employer taxes if relevant.
The calculator estimates gross spend, net burn, and how much of monthly expenses are covered by revenue.
Gross burn shows total monthly operating spend. Net burn shows the amount of cash consumed after revenue. Lower net burn and higher revenue coverage improve financial durability.
A high burn rate is not always bad, but it must be justified by growth, retention, or funding capacity.
With $18,000 revenue, $42,000 payroll, $9,000 marketing, and $11,000 other expenses, gross burn is $62,000 and net burn is $44,000 per month.
Add monthly operating expenses, then subtract monthly revenue to estimate net burn. Gross burn is total expenses before revenue.
A healthy burn rate depends on cash balance and growth stage, but it should usually leave at least 12 to 18 months of runway.
Use the monthly revenue and expense inputs to calculate net burn, which is the cash lost after revenue offsets spending.
Start with low-return software, unused contractors, inefficient paid acquisition, and delayed hires before cutting core product or sales capacity.
Higher coverage is better, but early SaaS companies may run below full coverage while investing in acquisition and product development.
| Metric | Use |
|---|---|
| Gross burn | Total operating spend before revenue. |
| Net burn | Monthly cash consumed after revenue. |
| Revenue coverage | How much of spend is funded by revenue. |
| Cost risk | Whether burn is manageable or urgent. |