Mr Calcu | See how long your startup can last. Get instant clarity on cash flow and funding needs with our easy burn rate calculator.

Calculate burn rate fast and uncover insights to protect your startup’s future. Make smarter decisions and avoid financial burnout with this free tool.

Burn Rate Calculator

Burn Rate Calculator Guidelines

You’re just a few clicks from clarity — here’s how to use it:

How to Use the Calculator

  • Step 1: Enter your average monthly expenses (e.g., payroll, rent, tools).
  • Step 2: Input monthly recurring revenue, if any.
  • Step 3: Add your current cash reserves (bank balance, investments).
  • Step 4: Choose to calculate gross or net burn rate:
    • Gross Burn = Expenses only
    • Net Burn = Expenses - Revenue
  • Step 5: Review your runway result to estimate sustainability.

Use averaged values for businesses with seasonal cash flow or inconsistent revenue streams to improve accuracy.

Burn Rate Calculator Description

What Is Burn Rate?

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.

Types of Burn Rate

  • Gross Burn Rate: Total monthly expenses before considering revenue.
  • Net Burn Rate: Expenses minus revenue, representing actual monthly cash loss.

Burn Rate Formula

Burn Rate (months) = Cash Reserves / Net Burn Rate

Mini Case Studies

Case Study 1: Pre-Revenue SaaS Startup

  • Cash reserves: $1,200,000
  • Monthly expenses: $100,000
  • No revenue
  • Runway: $1,200,000 / $100,000 = 12 months

Case Study 2: E-commerce Startup with Revenue

  • Cash reserves: $600,000
  • Monthly expenses: $80,000
  • Monthly revenue: $30,000
  • Net Burn: $80,000 - $30,000 = $50,000
  • Runway: $600,000 / $50,000 = 12 months

Additional Tips

  • Track both fixed and variable costs
  • Use 3–6 month averages for fluctuating revenue or seasonal operations
  • Exclude one-time costs unless they recur
  • Account for payment delays and invoicing cycles

Start now and make smarter financial decisions — your runway depends on it.

Example Calculation

Monthly ExpensesMonthly RevenueCash ReservesNet Burn RateRunway
$70,000$0$560,000$70,0008 months
$100,000$40,000$600,000$60,00010 months
$120,000$120,000$500,000$0∞ (Break-even)
$100,000$150,000$400,000-50,000Growing cash reserves
$85,000$85,000$200,000$0∞ (Break-even)
$90,000$100,000$150,000-10,000Cash-positive (surplus)

Frequently Asked Questions

Burn rate is the pace at which a company spends its cash reserves, usually calculated monthly.

It helps startups forecast how long they can operate before running out of cash, informing fundraising and budgeting decisions.

A zero burn rate means your company is breaking even — your revenue matches or exceeds expenses.

Net Burn Rate = Monthly Expenses - Monthly Revenue. This shows the actual cash drain.

Use a 3-month or 6-month rolling average to calculate a more stable and realistic burn rate.

Yes, if monthly revenue exceeds expenses. This means your business is generating net positive cash flow.

No, runway = Cash Reserves / Net Burn Rate. It’s the number of months you can continue operating at the current net burn.

If revenue is delayed (e.g., 30-day invoices), actual cash inflow is reduced temporarily, effectively increasing net burn in the short term.

Most VCs recommend 12–18 months of runway. This provides enough time to achieve milestones or raise new funding.

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