Free Burn Rate & Runway Calculator
Calculate your startup burn rate and runway. Track monthly expenses, revenue, and see how long your funding will last with growth projections.
Cash Position
Used for adjusted runway calculation
Monthly Expenses
Enter your cash position and expenses to calculate runway
How to Use the Burn Rate & Runway Calculator
Enter Your Cash Position
Input your current cash on hand - the total available funds in your bank accounts. This is your starting point for calculating runway.
Add Monthly Expenses
Enter your total monthly operating expenses including salaries, rent, software, marketing, and other recurring costs. This determines your gross burn rate.
Include Monthly Revenue
If you have revenue, enter your monthly recurring revenue. The calculator will compute your net burn rate (expenses minus revenue) for a more accurate runway.
Review Runway Analysis
View your runway in months, zero cash date, and burn rate metrics. Use the growth projections to see how revenue increases could extend your runway.
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Understanding Burn Rate & Runway
Burn rate and runway are fundamental metrics every startup founder must understand. Burn rate tells you how fast you are spending money, while runway tells you how long that money will last. Managing these metrics is crucial for survival and timing your next fundraise.
Key Concepts
- Gross Burn: Total monthly operating expenses before revenue
- Net Burn: Gross burn minus monthly revenue (actual cash consumption)
- Runway: Cash on hand divided by monthly net burn rate
- Default Alive: If revenue growth means you will reach profitability before running out of cash
Frequently Asked Questions
What is burn rate and why does it matter?
Burn rate is the rate at which a startup spends money before generating positive cash flow. It matters because it determines how long your funding will last (runway) and when you need to raise more money or become profitable.
How do I calculate my startup runway?
Runway = Cash on Hand ÷ Monthly Net Burn Rate. Net burn is your total monthly expenses minus monthly revenue. For example, with $500K cash and $50K net burn, you have 10 months of runway.
What is a good runway for a startup?
18-24 months is typically considered healthy runway. 12-18 months means you should be planning your next raise. Under 12 months is concerning and under 6 months is critical. Always account for fundraising taking 3-6 months.
Should I include revenue in burn rate calculations?
Yes, for net burn rate. Gross burn is total expenses regardless of revenue. Net burn subtracts revenue from expenses. Net burn gives a more accurate runway estimate but gross burn shows your expense baseline.
When should I start fundraising based on runway?
Start fundraising when you have 6-9 months of runway remaining. Fundraising typically takes 3-6 months, so this gives you buffer. Starting earlier with 12+ months runway gives you more negotiating leverage.
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