Cash burned per month (gross/net). The Burn Rate Calculator takes monthly operating expenses, monthly revenue, cash in the bank and returns net burn per month plus gross burn per month, runway at the net burn, revenue covers this share of expenses. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Startup metrics are about the efficiency of growth: how much it costs to win and keep customers, how fast recurring revenue compounds, and how long the cash lasts. Investors read these numbers before they read the pitch. Use the worked example below to check the maths against your own figures.
How the Burn Rate Calculator works
Gross burn is what you spend; net burn is what the bank balance actually falls by. Investors ask for both, and for the runway they imply.
Worked example
With the example values (monthly operating expenses of $90,000, monthly revenue of $30,000, cash in the bank of $600,000), the net burn per month is $60,000.00; gross burn per month $90,000.00, runway at the net burn 10 months, revenue covers this share of expenses 33.33%. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is net burn per month calculated?
gross burn = monthly expenses; net burn = expenses − revenue; runway = cash ÷ net burn.
Which figures do I need?
Monthly operating expenses, monthly revenue, cash in the bank. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What do investors consider healthy?
Common benchmarks: LTV:CAC above 3, CAC payback under 12–18 months, net revenue retention above 100%, monthly churn under 2% for SMB and under 1% for enterprise, and at least 12–18 months of runway.
