🚀 Startup Cash Runway & Burn Rate Calculator
Forecast your exact zero-cash date, net burn rate, and test survival scenarios.
75% of target 18 months
📅 12-Month Projected Cash Trajectory
| Month | Projected Revenue | Projected Expenses | Net Burn | Ending Cash Balance |
|---|
Understanding Startup Burn Rate
For early-stage startups, cash is oxygen. The speed at which a company consumes its venture capital or bootstrapped funds before generating positive cash flow is known as the Burn Rate. Tracking this metric accurately is the difference between successfully reaching your Series A funding round and abruptly going out of business. Our calculator instantly determines your Gross Burn, Net Burn, and Total Cash Runway.
Gross Burn vs. Net Burn
It is vital for founders to understand the distinction between the two primary types of burn rate:
- Gross Burn: The total amount of money your startup spends each month, regardless of any incoming revenue. This includes salaries, server costs, office rent, and marketing spend.
- Net Burn: Your Gross Burn minus any revenue generated in that same month. If you spend $50,000 but generate $20,000 in early subscriptions, your Net Burn is $30,000. This is the more critical number for calculating your actual survival timeline.
How to Calculate Cash Runway
Your Cash Runway is the number of months your startup can survive before running completely out of money. You calculate it by dividing your current cash reserves by your Monthly Net Burn. For example, if you have $300,000 in the bank and a Net Burn of $30,000, you have exactly 10 months to either reach profitability or secure another round of funding. Investors typically want to see at least 12 to 18 months of runway when writing a check.