Burn Rate Calculator
Startup runway: how to calculate cash burn rate
A startup burn rate calculator tool that helps estimate how quickly a startup business is spending its available capital. It enables entrepreneurs to track monthly cash flow, measure their business runway, and make smarter financial planning decisions to assess startup sustainability and funding needs.
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Cash Runway Chart
Frequently Asked Questions
Answers to common queries on calculating startup burn rate and cash runway
Burn rate shows how fast you’re spending cash each month. Tracking it tells you how many months of runway you have and when you’ll need to cut costs, raise, or grow revenue to stay healthy.
Simple burn rate = (Starting Cash − Ending Cash) ÷ Number of Months. Example: if cash drops from $500k to $380k over 2 months, burn = ($500k − $380k) ÷ 2 = $60k/month.
Net burn = Operating Cash Outflows − Operating Cash Inflows (e.g., revenue, interest). It reflects your true monthly cash loss after income.
It shortens your runway. You may need to slow hiring, trim discretionary spend, reprice, or accelerate sales to avoid a cash crunch.
Prioritize high-ROI work, renegotiate vendors, optimize cloud & tooling, right-size headcount, and improve collections to pull cash forward.