Burn Rate Calculator
Work out your startup's gross burn, net burn and cash runway in months from cash in the bank, monthly expenses and monthly revenue. Free, no signup.
Burn rate is how fast a company spends its cash. Gross burn is total monthly expenses; net burn is expenses minus revenue, the cash you actually lose each month. Runway is cash in the bank divided by net burn - with $250,000 and a $22,000 net burn you have about 11.4 months.
Runs entirely in your browser · no signup · nothing is uploaded · updated 2026-10-29
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How to use it
- 1.Enter the cash you have in the bank today.
- 2.Enter total monthly expenses - payroll, tools, rent, everything.
- 3.Enter monthly revenue to see net burn, runway and the month cash runs out.
Burn rate formulas
Use a three-month average of expenses and revenue; a single month is noisy.
| Metric | Formula | Worked example |
|---|---|---|
| Gross burn | Total monthly expenses | $30,000 |
| Net burn | Monthly expenses - monthly revenue | $30,000 - $8,000 = $22,000 |
| Runway | Cash / net burn | $250,000 / $22,000 = 11.4 months |
| Burn multiple | Net burn / net new ARR | $22,000 x 12 / $132,000 = 2.0 |
Embed this burn rate calculator on your site
Free to use on any blog, class page or wiki. Paste the snippet and keep the credit line under it.
<iframe src="https://rankcert.com/embed/burn-rate-calculator" title="Burn Rate Calculator" width="100%" height="600" style="border:0;border-radius:12px" loading="lazy"></iframe> <p style="font-size:13px">Free <a href="https://rankcert.com/tools/burn-rate-calculator">burn rate calculator</a> by RankCert</p>
Frequently asked questions
What is the difference between gross and net burn?
Gross burn is everything you spend in a month. Net burn subtracts the revenue you bring in, so it is the cash your bank balance actually drops by. Runway is always calculated on net burn.
How many months of runway should a startup have?
The common rule is 18 to 24 months after a raise, because fundraising itself takes 3 to 6 months. Under 6 months of runway means you should already be raising, cutting costs or both.
What is a good burn rate?
There is no single number - it depends on growth. The burn multiple (net burn divided by net new ARR) is the better check: under 1 is excellent, 1 to 2 is good, above 3 means you are spending too much for the growth you get.
Should I include one-off costs in burn rate?
Track them separately. A one-off legal bill or hardware purchase distorts a single month; average your burn over the last three months to get the number you plan on.
Does burn rate include founder salaries?
Yes. Any salary paid out of company cash is part of burn. If founders are unpaid today, model the runway both ways so you know what happens when they start drawing a salary.
How do I extend runway?
Raise revenue, cut the largest expense lines, or raise money. Cutting tools and small subscriptions rarely moves runway much - payroll is usually 60 to 80 percent of burn.
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