Calculate your monthly burn rate — gross and net — to understand how fast you spend cash.
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Total cash and equivalents at month start.
Cash remaining at month end.
Total revenue collected this month.
Total operating expenses this month.
Net Burn = Cash Start − Cash End
Gross Burn = Total Monthly Expenses
Net Burn Rate = Expenses − Revenue
Gross burn is total spending. Net burn subtracts revenue. The difference is your cash consumption rate.
Enter values to calculate.
Gross burn is total expenses. Net burn subtracts revenue. Net burn is what matters for runway.
It depends on stage and funding. Generally, keep 18-24 months of runway. If burn exceeds plan, cut early.
Audit non-essential spending, renegotiate contracts, slow hiring, and focus on revenue acceleration.
When runway drops below 12 months and you are not actively fundraising or approaching profitability.