Startup Burn Rate & Runway Calculator
Calculate your net burn and runway to understand how long your startup can survive with its current cash reserves.
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Understanding Your Burn Rate and Runway
For any startup, cash is oxygen. Your burn rate is the rate at which you are spending your cash reserves, and your runway is the number of months you have left before that cash runs out. These are the most critical survival metrics for an early-stage company.
What is Net Burn?
Your Net Burn is the true measure of your monthly cash loss. It's calculated as: Monthly Expenses - Monthly Revenue. A positive net burn means you are spending more than you earn. Tracking this number helps you understand the real cost of your operations.
What is Runway?
Your Runway is simply: Total Cash Balance / Monthly Net Burn. It tells you how long you can continue to operate at your current burn rate. Knowing your runway is crucial for planning your next fundraising round. Most startups aim to start fundraising when they have 9-12 months of runway left.
How to Use This Information
A short runway is a signal to take action. You can either reduce your burn rate by cutting costs, or you can increase your cash inflows by boosting sales or raising more capital. This calculator gives you the clarity needed to make those decisions proactively.
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