How this calculator works
Calculate gross burn, net burn, and annualized burn rate from startup expenses and revenue. Use it for quick planning, campaign review, cash-flow checks, and small business decision-making without setting up a spreadsheet.
Net burn = monthly expenses − monthly revenue
Runway = cash balance ÷ net burn
Runway = cash balance ÷ net burn
These results are estimates for planning. Actual outcomes can vary based on taxes, refunds, timing, margins, sales cycle, payroll rules, and business model.
How to use this calculator
- Enter realistic values that match your current situation.
- Press Calculate to refresh the estimate.
- Compare the main result with the supporting details in the result panel.
- Change one input at a time to see which variable affects the result most.
Planning note: Startup Burn Rate Calculator gives an educational estimate. It does not include every tax rule, fee, platform policy, market condition, or personal constraint, so use it as a quick planning reference rather than a final decision.
FAQ
What is startup burn rate?
Burn rate is the amount of cash a startup spends each month to operate.
What is the difference between gross and net burn?
Gross burn is total monthly spending. Net burn subtracts monthly revenue from spending.
Why does burn rate matter?
It determines runway, fundraising timing, and how quickly a startup must grow or reduce costs.
Can burn rate be zero?
Yes. If monthly revenue covers expenses, net burn can be zero or negative.
How do startups reduce burn rate?
They reduce nonessential costs, improve pricing, increase revenue, or delay hiring.