Estimate your startup's cash burn rate and runway. Enter current cash and monthly inflows and outflows to see net burn, approximate runway, and a simple cash balance projection. Educational use only, not financial advice.
Enter your cash and monthly flows
Enter your current cash and monthly inflows and outflows to see net burn, approximate runway in months and days, and how your cash balance could change over the next few months.
Educational only โข Not financial advice
Ask things like: "What does my break-even point mean for my business?", "How can I lower my break-even?", "Is my contribution margin healthy?", or "What happens if I increase my price by 10%?"
This AI is experimental and may be inaccurate. Always validate important business, financial, and strategic decisions with qualified professionals before acting on them.
Cash burn refers to the net cash outflow of a business over a period of time. For startups and growing companies, this is typically measured on a monthly basis. A company that spends more than it earns is said to be "burning cash."
Net burn rate is calculated as:
Cash runway is the amount of time a company has before it runs out of cash at its current burn rate. It is typically expressed in months.
Runway formula:
Runway is only meaningful when a company is burning cash. If the company is generating net positive cash flow, runway is theoretically unlimited (assuming constant flows).
Gross burn is your total monthly cash outflows, regardless of revenue. It represents the full cost of operating your business.
Net burn is gross burn minus your cash inflows (revenue, etc.). It represents the actual rate at which your cash reserves are depleting.
| Metric | Definition | Use Case |
|---|---|---|
| Gross Burn | Total monthly cash out | Understand total operating cost |
| Net Burn | Cash out minus cash in | Calculate runway and plan funding |
This calculator focuses on net burn since it determines how quickly your cash reserves change over time.
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