Burn Rate Calculator
Calculate your startup's gross and net burn — from historical cash change or current revenue and expenses — plus annualized burn and an estimated runway.
Written and reviewed by the CalcBundle editorial team. Transparent formulas · results are estimates, not advice.
Net monthly burn
Enter your monthly expenses (greater than zero).
What is a burn rate calculator?
Burn rate is how fast your startup spends cash. This calculator computes both gross burn (total monthly spend) and net burn (spend minus revenue), annualizes them, and — if you provide a cash balance — estimates your runway.
Two ways to calculate burn
- Historical burn = (Starting cash − Ending cash) ÷ months in the period. Best when you have real bank balances over time.
- Current burn: gross burn = monthly expenses; net burn = expenses − revenue. Best for a forward-looking monthly view.
Gross vs net burn
Gross burn tells you your cost base; net burn tells you how fast your cash is actually falling. A company with high revenue can have a large gross burn but a small net burn. Runway depends on net burn.
A note on cash vs revenue
Burn is about cash. If customers pay slowly, recognised revenue can overstate the cash actually coming in. For an accurate picture, use cash receipts, and model timing with the cash flow calculator.
Example
If cash falls from $500,000 to $350,000 over 6 months, the average monthly burn is $25,000, or $300,000 annualized.
Related tools
Turn burn into a timeline with the startup runway calculator, and track profitability with the business profit calculator.
Frequently asked questions
What is the difference between gross burn and net burn?
Gross burn is the total cash your business spends in a month. Net burn subtracts revenue from that spend. Net burn is what actually reduces your cash balance and drives runway.
How do you calculate burn rate?
Two ways. Historical: (starting cash − ending cash) ÷ number of months. Current: monthly expenses (gross burn) minus monthly revenue (net burn). This calculator supports both.
What is a monthly vs annualized burn?
Monthly burn is cash used per month; annualized burn multiplies it by 12 to show the yearly run-rate. Annualized burn is useful when planning fundraises and budgets.
How does burn affect runway?
Runway = current cash ÷ net burn. The higher your net burn, the shorter your runway. Reducing burn is the fastest way to extend how long your cash lasts.
Related calculators
Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Burn and runway are estimates based on the figures you enter and can change month to month.