Monthly Financials
Enter 0 for pre-revenue startups
Month-over-month growth rate
Planned hiring, scaling costs, etc.
Planned Funding (Optional)
Months from now until funding closes
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What This Calculator Does
This burn rate and runway calculator computes both gross burn rate (total monthly expenses) and net burn rate (expenses minus revenue) for startups and growing businesses. It projects cash runway in months, generates a 24-month cash forecast accounting for revenue growth and expense scaling, calculates the funding gap needed to reach a target runway, and identifies the exact month when cash runs out. The calculator supports pre-revenue startups and revenue-generating companies at every stage from pre-seed through Series C+. Benchmarks reflect 2026 venture capital and startup operating data.
The Formula
Gross burn rate is total monthly operating expenses regardless of revenue. Net burn rate subtracts revenue, showing the actual monthly cash consumption. Runway divides available cash by net burn to determine how many months the company can operate before running out of money. When revenue growth and expense growth rates are provided, the calculator projects forward month by month, compounding growth rates to show a realistic cash trajectory rather than a simple linear calculation.
Step-by-Step Example
Enter financial position
Seed-stage startup with $1,500,000 cash on hand, $50,000 monthly revenue, and $120,000 monthly expenses.
Calculate burn rates
Gross burn: $120,000/month. Net burn: $120,000 - $50,000 = $70,000/month.
Calculate runway
Static runway: $1,500,000 / $70,000 = 21.4 months. With 8% monthly revenue growth and 3% expense growth, projected runway extends as revenue approaches expenses.
Assess funding needs
At 21 months of runway, the company is in healthy position. Funding gap for 18-month target: $0 (already exceeded). Begin fundraising planning at month 12 to 14.
Real-World Use Cases
Fundraising Planning
Founders use runway calculations to determine when to begin the next fundraising round. Since most rounds take 4 to 6 months to close, starting at 12 to 14 months of remaining runway is standard practice.
Board Reporting
CFOs present burn rate, runway, and cash projections in monthly board updates. The 24-month projection helps board members understand the cash trajectory under current assumptions.
Scenario Planning
Model the impact of hiring decisions, revenue growth assumptions, and expense changes on runway. If adding 5 engineers increases burn by $75,000/month, the calculator shows exactly how that affects runway.
Common Mistakes to Avoid
Using gross burn instead of net burn for runway calculations. A company burning $200,000/month gross but generating $120,000 in revenue has a net burn of $80,000. Using gross burn overstates the problem by 2.5x.
Not accounting for revenue growth when calculating runway. A company growing revenue 10% month-over-month will have a much longer effective runway than the static calculation suggests.
Waiting too long to fundraise. If fundraising takes 4 to 6 months, starting with only 6 months of runway leaves zero margin for delays. Start fundraising at 14 to 18 months of remaining runway.
Ignoring one-time expenses in burn calculations. Legal fees, equipment purchases, and security deposits create temporary burn spikes that overstate the steady-state run rate.
Frequently Asked Questions
Accuracy and Disclaimer
Burn rate and runway calculations are projections based on current financial data and growth assumptions. Actual results will vary based on market conditions, revenue performance, hiring pace, and unexpected expenses. This calculator is for financial planning purposes and does not constitute investment or fundraising advice. Consult your CFO or financial advisor for funding decisions.
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