Burn Rate & Runway Calculator
Track your startup's monthly cash burn and calculate how long your funding will last. Essential for financial planning, investor updates, and funding decisions. Plan different scenarios and optimize your cash management.
Financial Position
Monthly Expenses
Growth Assumptions
Monthly Gross Burn
Monthly Net Burn
Based on current burn rate and available cash
Scenario Analysis
Conservative
Reduce expenses by 20%, maintain current revenue
Current
Continue with current burn and revenue rates
Growth
Increase expenses by 30% for growth, boost revenue by 50%
Aggressive
Double expenses for rapid growth, 3x revenue growth
Recommendations
Understanding Burn Rate & Runway
Gross Burn Rate
Total monthly cash outflow from all operating expenses including salaries, rent, marketing, and other costs.
Net Burn Rate
Monthly cash outflow minus any revenue generated. This shows your actual cash consumption after accounting for income.
Cash Runway
Number of months your startup can operate before running out of cash, based on current burn rate and available funds.
Burn Rate Management Best Practices
Optimize Your Burn Rate
- Track everything: Monitor all expenses monthly and categorize them
- Focus on essentials: Prioritize expenses that directly impact growth
- Negotiate costs: Review contracts and subscriptions regularly
- Plan scenarios: Model different growth and expense scenarios
Extend Your Runway
- Increase revenue: Focus on sales and customer acquisition
- Reduce non-essentials: Cut unnecessary subscriptions and services
- Delay hiring: Hire only critical roles until revenue grows
- Raise funds early: Start fundraising with 12+ months runway
Frequently Asked Questions
What is a healthy burn rate for a startup?
Healthy burn rates vary by stage and industry. Early-stage startups might burn $20K-$50K monthly, while growth-stage companies could burn $200K+. The key is having 12-18 months of runway and a clear path to profitability or next funding round.
How often should I calculate my burn rate?
Calculate your burn rate monthly and review it with your team. Many successful startups track it weekly during critical periods. Regular monitoring helps you spot trends early and make necessary adjustments.
When should I start worrying about my runway?
Start planning your next funding round when you have 12-18 months of runway left. If you're below 6 months, it's critical to either raise funds immediately or drastically reduce burn rate.
How do I reduce my burn rate without hurting growth?
Focus on efficiency: automate processes, renegotiate contracts, eliminate underperforming marketing channels, and delay non-critical hires. Avoid cutting essential growth investments like key sales/marketing activities or core product development.
What expenses should I include in burn rate calculation?
Include all operating expenses: salaries, benefits, rent, software subscriptions, marketing spend, legal/accounting fees, and other regular business costs. Exclude one-time expenses or capital expenditures.