Burn Rate Calculator
Calculate monthly burn rate, runway, and cash zero date for startups.
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Understanding Burn Rate
Burn rate is one of the most important metrics for startups and growing businesses. It measures how quickly you are using your cash reserves and helps you plan fundraising timelines.
Key Formulas
- Net Burn Rate = Monthly Expenses − Monthly Revenue
- Runway = Cash Balance ÷ Net Burn Rate
Frequently Asked Questions
Burn rate is the rate at which a company spends its cash reserves. Net burn rate subtracts monthly revenue from monthly expenses to show the true cash outflow.
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