Business Finance
Burn Rate Calculator
Measure how quickly cash changed over a period and estimate runway from the current ending cash balance.
Average monthly burn
$10,000.00
Results update when the form is submitted.
Detailed breakdown
- Gross burn
- $15,000.00
- Net burn
- $10,000.00
- Average monthly burn
- $10,000.00
- Cash reduction
- $30,000.00
- Estimated runway months
- $7.00
How this calculator works
Net burn is the monthly change in cash over the selected period. Gross burn can be entered from monthly operating expenses.
Formula
average_monthly_burn = (starting_cash - ending_cash) / period_monthsExample calculation
If cash fell from 100,000 to 70,000 over 3 months, average monthly burn is 10,000.
Important considerations
Positive cash flow creates negative net burn, so runway should be interpreted as sustainable rather than a depletion date.
FAQs
Can net burn be negative?
Yes. Negative burn means cash increased during the period.
What is gross burn?
Gross burn usually means monthly expenses before revenue offsets.
Related tools
Startup Runway Calculator, Break Even Calculator, Profit Margin Calculator
Related guides
Burn Rate and Startup Runway Explained
Disclaimer
Results are estimates for planning purposes and are not financial, tax, legal, accounting, or investment advice.