Understand Your Startup Cash Position
A clear view of cash is one of the most important parts of running a company well. This burn rate calculator helps founders quickly measure monthly spend, compare it against revenue, and understand how much runway is left at the current pace. Instead of digging through formulas in a spreadsheet, you can get an instant snapshot of gross burn, net burn, and the date your cash could hit zero.
Why Burn Rate Matters
Burn rate is more than a finance metric. It shapes hiring plans, fundraising timing, and day-to-day operating decisions. A founder with strong visibility into net cash outflow can make smarter calls before the pressure builds. That’s especially useful when markets tighten or growth investments need to be weighed carefully.
Fast Answers, No Extra Clutter
This startup runway calculator is built to stay simple. Enter your current cash balance, monthly revenue, and monthly expenses, and the results appear immediately above the fold. If your business is already covering its costs, the tool clearly shows that you’re cash-flow positive. If not, you’ll see your monthly burn and estimated runway in a format that’s easy to act on. It’s a practical way to check financial health without adding noise or unnecessary features.
FAQs
What’s the difference between gross burn and net burn?
Gross burn is your total monthly operating spend before revenue is taken into account. Net burn is what you’re actually losing each month after revenue offsets expenses. For example, if you spend $80,000 a month and bring in $30,000, your gross burn is $80,000 and your net burn is $50,000. Net burn is usually the more useful number when you're trying to understand runway.
How is runway calculated in this tool?
Runway is calculated by dividing your current cash balance by your net burn, but only when net burn is greater than zero. That gives you an estimate of how many months your startup can keep operating at the current pace before cash runs out. If your revenue matches or exceeds your expenses, the tool won’t show runway because you’re not currently burning cash on a net basis.
Why does the tool ask for total funding raised if it doesn’t affect the math?
Total funding raised can be helpful context, especially for founders, operators, or investors reviewing the numbers. It doesn’t change gross burn, net burn, or runway in this version of the calculator, but it can help frame how efficiently the company is using capital relative to what it has raised so far.
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