Burn Rate Calculator
Calculate your startup's gross and net burn rate to understand your monthly cash consumption and plan your runway effectively.
Calculate Your Burn Rate
Total monthly costs including salaries, rent, tools, etc.
If your startup generates revenue, enter it here for net burn rate.
Comma-separated monthly expenses to visualize spending trends.
Frequently Asked Questions
What is a good burn rate for a startup?
There is no single 'good' number — a healthy burn rate is one that leaves you 12–18 months of runway at your current cash balance. Compare net burn to cash on hand: if it gives you under 6 months, you are in a raise-or-cut zone.
What is the difference between gross and net burn rate?
Gross burn is your total monthly cash outflow (all operating expenses). Net burn is gross burn minus monthly revenue — the amount your bank balance actually drops each month. Net burn is what determines runway.
How do I reduce my burn rate?
The fastest levers are headcount, paid acquisition, and software/tooling. Cut or renegotiate the largest recurring line items first, and tie any spend that remains to a measurable return before your runway drops below six months.
How does burn rate affect fundraising?
Investors read burn rate as a signal of discipline and of how long their capital will last. A lower, well-justified burn with clear runway makes a raise easier; an unexplained high burn is the most common diligence red flag.