Calculate your startup's burn rate and runway. Know exactly when your cash runs out so you can plan ahead.
Formulas
Net Burn = Expenses - Revenue
Runway = Cash / Net Burn
Tips to Extend Runway
Most startups should maintain at least 12-18 months of runway. This gives you enough time to iterate on your product and find product-market fit.
Browse validated business ideas ranked by opportunity score, complete with market data and competitive analysis.
Get StartedBurn rate is one of the most critical metrics for any startup founder. It tells you how quickly you're spending money and, more importantly, how long you have before your cash runs out. Understanding your burn rate is the difference between making informed decisions and running blind.
Gross burn rate is your total monthly spending, regardless of revenue. This includes salaries, rent, software subscriptions, marketing spend, and every other expense. It gives you the full picture of your cost structure.
Net burn rate subtracts your monthly revenue from your expenses. This is the number that actually matters for runway calculations. If your net burn is negative, congratulations. You're profitable and your runway is effectively infinite.
Runway is simply your cash balance divided by your net burn rate. It tells you how many months you can operate before running out of money. Smart founders track this weekly and plan fundraising or cost-cutting moves well before the runway gets dangerously short.
This calculator also supports revenue growth projections. If your revenue is growing month over month, your adjusted runway could be significantly longer than the simple calculation suggests. Enter your growth rate to see the difference.
As a rule of thumb, aim to maintain at least 12-18 months of runway at all times. If you're below 6 months, it's time to take immediate action, whether that means cutting costs, increasing revenue, or raising capital.