Startup Burn Rate Calculator
Calculate startup burn rate and runway. See how many months of cash you have left.
Gross Burn
$50,000.00
Net Burn
$35,000.00
Runway
14.3 mo
Burn Rate Analysis
| Monthly Expenses | $50,000.00 |
| Monthly Revenue | $15,000.00 |
| Net Burn Rate | $35,000.00 |
| Cash in Bank | $500,000.00 |
| Runway | 14.3 months |
| Cash Runs Out | July 2027 |
Cash Needed to Reach Target Runway
| 12 months runway | Already covered |
| 18 months runway | $130,000.00 |
| 24 months runway | $340,000.00 |
Use the Startup Burn Rate Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Our Startup Burn Rate Calculator helps you quickly determine your monthly cash burn and, crucially, your financial runway. Understanding your burn rate is vital for strategic planning, fundraising, and ensuring your startup's survival through 2026 and beyond. This tool provides a clear picture of how many months of operational capacity you have left before needing additional funding or becoming profitable.
The core methodology involves calculating your Net Burn Rate, which is your Total Monthly Expenses minus your Total Monthly Revenue. Your Runway is then derived by dividing your Current Cash Balance by your Net Burn Rate. We assume a consistent burn rate for future months, though you can adjust inputs to model different scenarios.
A common mistake is underestimating 'hidden' expenses like software subscriptions or unexpected legal fees. Always factor in a contingency buffer, typically 10-20% of your total expenses, to account for unforeseen costs. Remember that burn rate changes as your business scales, so recalculate regularly, at least quarterly.
Example: Early-Stage SaaS Startup in October 2026
- 1 Let's say an early-stage SaaS startup in October 2026 has a current cash balance of $250,000. Their average monthly expenses are $60,000 (including salaries, marketing, cloud hosting, and rent), and their average monthly revenue is $15,000 from subscriptions.
- 2 First, we calculate the Net Burn Rate: $60,000 (Expenses) - $15,000 (Revenue) = $45,000 per month. Next, we calculate the Runway: $250,000 (Cash Balance) / $45,000 (Net Burn Rate) = 5.56 months.
- 3 This startup has a Net Burn Rate of $45,000 per month and a financial runway of approximately 5.56 months.
- 4 This means the startup will run out of cash by mid-April 2027 if current trends continue. This insight provides a critical deadline for securing new funding, significantly increasing revenue, or reducing expenses to extend their operational window.
Source: SBA — Business Guide · Last updated: April 2026
Frequently Asked Questions
What is the difference between gross and net burn rate?
How many months of runway should a startup have?
How do I calculate runway?
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