Startups & SaaS
Burn Rate Calculator
Track how much cash your startup burns each month.
Burn Rate Calculator
All math runs locally in your browser. Nothing is uploaded.
How it works
Burn rate is how fast a startup spends its cash. Net burn subtracts what comes in from what goes out: at $60,000 out and $20,000 in, the net burn is $40,000 a month — the true number that drains the bank.
Knowing gross and net burn separately matters: gross burn is the cost of running the machine, while net burn is what you must fund from savings. Investors watch both, and the runway page turns the net number into a survival timeline.
Formula
Net burn = Monthly cash out − Monthly cash in
Gross burn = cash out alone. Include every recurring cost: payroll, rent, software, contractors.
Worked example
Example: payroll, rent and software cost $60,000 a month; revenue brings in $20,000. Net burn = $40,000 a month. With $400,000 in the bank, the runway page shows about 10 months.
WORKED EXAMPLE — DEFAULT INPUTS
What to know
Cash management is a monthly ritual, not a quarterly glance. The most dangerous spending pattern is silent creep: software subscriptions, contractor hours and small perks that each look harmless but add to a burn rate that was already too high.
A simple discipline is to review the net burn against the bank balance on the same day each month and to recalculate runway every time. Founders who catch a rising burn early have options; those who discover it late are negotiating from weakness.
Small businesses and freelancers use the same logic with a different name: monthly cash gap. When outflows exceed inflows for a stretch, the gap is what reserves must cover, and the fix is the same — raise revenue or trim the fixed base.
FAQ
What is a healthy burn rate?
It depends on stage and funding. A common rule is to keep 12-24 months of runway; if burn would consume that faster, raise money or cut spend.
Gross vs net burn, which matters?
Net burn for runway planning, gross burn for cost control. A startup can have high gross burn but near-zero net burn if revenue covers most costs.
How do I calculate burn for a specific month?
Total cash out minus total cash in for that month. Use actual cash movements, not accounting accruals.
Can burn rate be negative?
Yes, when cash in exceeds cash out. That means the company is cash-flow positive and growing its balance without external money.