Startup Burn Rate & Cash Runway Calculator
Calculate gross and net monthly cash burn, total months of operating runway remaining, and projected zero cash exhaustion dates with health benchmark…
Calculation Formula
How to Use the Startup Burn Rate & Cash Runway Calculator
- 1 Enter Current Cash & Bank Balance.
- 2 Enter Average Monthly Gross Expenses (payroll, software, office, marketing).
- 3 Enter Average Monthly Operating Revenue (cash collected from customers).
- 4 View Net Monthly Burn, Runway in Months, and the exact calendar Zero Cash Date.
Methodology & Algorithmic Standards
Formulas: Net Monthly Burn = Gross Expenses | Monthly Revenue; Cash Runway (Months) = Current Cash / Net Monthly Burn. Projects calendar exhaustion date using native JavaScript Date math.
Frequently Asked Questions
What is the difference between Gross Burn and Net Burn? ▼
Gross Burn is the total cash your business spends each month. Net Burn subtracts monthly incoming customer revenue from gross spending to show actual cash lost.
How much runway should an early-stage startup maintain? ▼
Startups typically aim for 18 to 24 months of runway before raising their next round to allow sufficient time for product traction and fundraising.
What if my revenue exceeds expenses? ▼
The tool automatically detects profitability (negative net burn) and indicates that your business is cash-flow positive and "default alive".
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