Burn Rate and Runway Calculator
Find how fast a business is spending cash and how many months until it runs out.
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Months of Runway
- Gross burn
- Net burn
- Runway at today’s burn
- Cash runs out
- Revenue needed to break even
- Runway with Growth
Scenarios
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How to Calculate Burn Rate and Runway
Gross burn is all the cash you spend in a month. Net burn is gross burn minus the cash that comes in. Runway is how many months your cash lasts at the net burn.
Net burn = monthly expenses − monthly revenue Runway = cash ÷ net burn
With growth, revenue rises each month and runway is found month by month
Worked Example
Tips
Use cash actually collected, not booked revenue. Plan to raise money or cut costs with at least 6 to 9 months of runway left.