Burn Rate Calculator
Calculate net burn, gross burn, and cash runway
Frequently Asked Questions
Gross burn is your total monthly operating expenses. Net burn is gross burn minus monthly revenue — the actual rate your cash balance is shrinking. A company can have high gross burn but low net burn if revenue is substantial.
Runway (months) = Current cash balance ÷ Net monthly burn. If revenue is growing, runway stretches further than a simple division suggests, since net burn shrinks each month — this calculator can account for a monthly revenue growth rate.
Most investors want to see 9-12 months of runway remaining before you start a fundraise, since raises typically take 3-6 months to close. A common target after closing a round is 18-30 months of runway.
Burn multiple = Net burn ÷ Net new ARR added over the same period. Under 1x is excellent (you're adding more recurring revenue than you're spending), 1-1.5x is a healthy Series A range, and above 2x signals you're spending heavily for each new dollar of recurring revenue.