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Burn Rate Calculator

Calculate how quickly your business is spending money and how long your cash runway will last.

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Total cash available to your business

$

Average total monthly expenditures

$

Average monthly incoming cash from operations

%

Expected month-over-month revenue growth rate (optional, default 0%)

Results

Fill in the form and click "Calculate" to see your burn rate and runway

Understanding Burn Rate and Cash Runway

Burn Rate measures how quickly your business is spending money. This metric is particularly important for startups and growing businesses that may not yet be profitable.

Two Key Metrics:

  • Gross Burn Rate: Your total monthly expenses (how much cash flows out)
  • Net Burn Rate: Your monthly expenses minus your monthly revenue (how much your cash balance decreases each month)

Cash Runway tells you how long your current cash will last at your current net burn rate. It's calculated by dividing your cash balance by your net burn rate.

Tips for Managing Burn Rate

  • Aim for at least 12-18 months of runway to ensure business continuity
  • Consider accelerating revenue growth or reducing expenses to extend runway
  • Review and prioritize expenses based on their return on investment
  • Plan fundraising activities well before you reach the end of your runway
  • Monitor changes in burn rate over time to identify trends

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