Startup Burn Rate Calculator
Calculate startup burn rate and runway. See how many months of cash you have left.
By Konstantin Iakovlev · Updated April 2026 · Source: SBA — Business Guide
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 | September 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
How fast a startup spends cash, and how long that cash lasts, sits at the center of planning, fundraising, and survival through 2026 and beyond. This tool turns your numbers into a monthly burn figure and a runway, showing how many months of operating capacity remain before you need more funding or reach profitability.
Net Burn Rate is the engine here: Total Monthly Expenses minus Total Monthly Revenue. Dividing your Current Cash Balance by that net burn gives your runway. The calculation assumes a steady burn going forward, but you can change the inputs to test different scenarios.
Hidden costs are where forecasts go wrong, whether it is creeping software subscriptions or an unexpected legal bill. Building in a contingency buffer, often 10-20% of total expenses, absorbs the surprises. Because burn shifts as the business scales, recalculate on a regular cadence, at least once a quarter.
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?
You might also need
Self-Employment Tax Calculator 2026 — SE Tax & Quarterly Payments
Calculate SE tax, quarterly estimated payments, and total tax burden for freelancers and 1099 contractors. Free, instant results based on 2026 IRS rates.
LLC vs S-Corp Tax Comparison Calculator
Compare tax liability as an LLC vs S-Corp. See how much you can save on self-employment tax with an S-Corp election.
W-2 vs 1099 Comparison Calculator
Compare take-home pay as a W-2 employee vs 1099 contractor. Find the equivalent 1099 rate to match your W-2 salary.