Burn Rate Calculator
Work out how fast a startup is spending cash and how long its reserves will last. Enter your monthly expenses (burn rate) and current cash reserves to get your runway in months and years.
Formula
Burn Rate = Monthly Expenses; Runway (Months) = Cash Reserves ÷ Monthly Burn Rate; Runway (Years) = Runway Months ÷ 12
- Net burn rate is the cash a company spends each month beyond what it earns — here it's your monthly expenses.
- Cash runway tells you how many months the reserves will last at that burn rate.
- Runway (months) = cash reserves ÷ monthly burn rate.
- Divide by 12 to express runway in years.
- Runway shrinks if expenses rise or revenue falls, so revisit it whenever your numbers change.
50,000/month burn, 500,000 reserves
Inputs
- Monthly Expenses: 50000
- Cash Reserves: 500000
Runway = 500,000 ÷ 50,000 = 10 months, or about 0.83 years before the cash runs out.
Frequently asked questions
What is burn rate?
It's how much cash a business spends each month. Net burn subtracts any revenue from gross spending.
What is cash runway?
Runway is how long your cash reserves will last at the current burn rate, usually expressed in months.
How do I extend my runway?
Cut expenses, raise revenue, or raise more capital. Any of these lowers burn or increases reserves.
What's a healthy runway?
Many founders aim for 12–18 months of runway so they have time to hit milestones before needing to raise again.
Does this include revenue?
This version uses your monthly expenses as the burn. If you have revenue, enter your net monthly spend (expenses minus income) instead.