Startup burn rate calculator
Enter your cash at the start and end of a period and the number of months to see what your startup really spends each month.
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How to use it
- Enter cash at start of period, cash at end of period, length of period and revenue collected in the period (0 if none).
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Net monthly burn = (opening cash − closing cash) ÷ months. Gross burn = net burn + (revenue collected ÷ months). Runway = closing cash ÷ net burn.
Example
Inputs: Cash at start of period = 500,000, Cash at end of period = 380,000, Length of period = 3 months, Revenue collected in the period (0 if none) = 60,000. Result: Net monthly burn: 40,000.00; Gross monthly burn (cash spent): 60,000.00; Total cash used in the period: 120,000.00.
Limits and caveats
- Assumes the burn in the period continues at the same pace; real months vary.
- Based on cash movement, so new funding or loans received in the period distort the result unless you remove them.
Questions about this tool
What is the difference between net and gross burn?
Gross burn is all the cash you spend in a month; net burn is what is left after subtracting revenue collected. Investors usually ask for net burn because it sets your runway.
How many months should I use?
A 3 to 6 month period gives a steadier figure than a single month that may include an annual payment or a large collection.
Should I include money raised in the period?
No. Remove any funding or loan received during the period from the closing balance, or the burn will look lower than it is.