Calculate burn rate fast and uncover insights to protect your startup’s future. Make smarter decisions and avoid financial burnout with this free tool.
You’re just a few clicks from clarity — here’s how to use it:
Use averaged values for businesses with seasonal cash flow or inconsistent revenue streams to improve accuracy.
Burn rate is a key financial metric that shows how fast a startup is using its cash reserves. It determines how long your company can sustain operations before needing new funds.
Burn Rate (months) = Cash Reserves / Net Burn Rate
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Monthly Expenses | Monthly Revenue | Cash Reserves | Net Burn Rate | Runway |
---|---|---|---|---|
$70,000 | $0 | $560,000 | $70,000 | 8 months |
$100,000 | $40,000 | $600,000 | $60,000 | 10 months |
$120,000 | $120,000 | $500,000 | $0 | ∞ (Break-even) |
$100,000 | $150,000 | $400,000 | -50,000 | Growing cash reserves |
$85,000 | $85,000 | $200,000 | $0 | ∞ (Break-even) |
$90,000 | $100,000 | $150,000 | -10,000 | Cash-positive (surplus) |