Startup Burn Rate & Runway Calculator
Calculate startup burn rate and monthly runway longevity. Find how many months until cash runs out.
What Is Startup Burn Rate?
Burn rate maps the exact velocity at which an early-stage startup consumes its available cash reserves before reaching profitability or securing fresh capital injections. Determining your precise runway—the exact count of months remaining before your bank balance hits zero—is the single most vital metric for any startup founder navigating toward viability.
Who Needs to Monitor Monthly Runway?
Venture-backed startup founders protecting seed capital, pre-revenue e-commerce creators tracking survival horizons, and agile corporate teams managing project budgets rely on burn rate logs to survive.
How to Calculate Burn Rate and Runway Months
1. Enter total available liquid cash reserves in bank. 2. Input average gross monthly cash outflows (expenses). 3. Input average monthly incoming revenue. 4. Click Calculate to see net burn rate and surviving runway in months.
Gross Burn vs. Net Burn: Key Differences
The computational engine delivers your net monthly cash burn (total outlays minus incoming revenue) alongside your surviving runway lifespan in months. If your remaining runway metrics slide below 6 months, you must immediately execute overhead cuts or kickstart an aggressive fundraising round.
Frequently Asked Questions
Q: What is the difference between gross burn and net burn?
A: Gross burn is your total monthly cash spent. Net burn is total cash spent minus incoming revenue (your true monthly loss).
Q: How many months of runway should a startup maintain?
A: Venture capitalists generally advise maintaining at least 18 to 24 months of runway to allow adequate time for product development and fundraising.
Q: When should a startup founder start pitching investors?
A: Start fundraising when you still have at least 6 to 9 months of runway remaining, as closing venture rounds typically takes 3 to 6 months.