01
Enter cash and expenses
Your current bank balance and total monthly cash expenses. These two numbers give the worst-case gross runway.
Startup Burn Rate Calculator
Gross vs net burn, cash runway, and bear/bull scenarios — instantly.
Updated Reviewed by Sajid Hussain· Editor
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Why trust this calculator
Last updated
June 2, 2026
Coverage
9 markets · 8 currencies
Privacy
Calculated in-browser · no data stored
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Know exactly how long your cash lasts
Burn rate and runway — the gross vs net distinction most tools miss
A startup burn rate calculator computes how fast you spend cash and how many months of runway remain. This one does what most free tools skip: it separates gross burn (what you spend) from net burn (what you actually consume after revenue), because they are different numbers with different implications — and confusing them is one of the most common mistakes founders make when talking to investors.
**Gross burn is total monthly cash expenses.** It is the floor: the minimum amount of cash you need every month regardless of revenue. Enter payroll, rent, software, contractors — everything that hits your bank account. Subtract non-cash items like depreciation and stock-based compensation; those show up on the P&L but do not touch your cash balance.
**Net burn is gross burn minus revenue.** This is the number that actually depletes your cash, and the correct denominator for computing runway. A startup spending $200k/month with $80k in revenue has a $120k net burn — not $200k. Most boards, investors, and "burn rate" conversations are really asking for net burn. Gross runway (cash ÷ gross burn) is the worst-case floor; net runway (cash ÷ net burn) is the realistic answer.
**Runway status is not binary — it is a spectrum.** Under 6 months is critical: a standard fundraise takes 3–6 months from first meeting to close, so you may already be too late. Six to twelve months is concerning: start the fundraise process now. Twelve to eighteen is comfortable. Above eighteen is healthy. This calculator classifies your position automatically and tells you what to do next, not just the number.
**Bear and bull scenarios reveal fragility.** A net runway that looks comfortable at current burn can turn concerning if the team grows by two engineers. We run the same model at ±20% burn so you can see whether your position is robust or fragile before the board meeting. Use the 12-month cash outflow to size the raise: if you need 18 months of runway post-close (to give time for the next round), you know exactly how much to ask for.
Quick facts
- Key distinction
- Gross burn vs net burn — correctly separated
- Runway
- Both gross (worst-case) and net (realistic)
- Status
- Critical / Concerning / Comfortable / Healthy
- Scenarios
- Bear (+20% burn) and bull (−20% burn) runway
- D&A add-back
- Exclude non-cash items for true cash burn
- Any currency
- Works globally — no rates, no FX
How it works
From three numbers to a complete cash picture
Three required inputs, one optional — under 30 seconds.
02
Add monthly revenue
Cash revenue collected this month. This separates gross burn from net burn and gives the realistic runway figure.
03
Adjust for non-cash (optional)
Enter depreciation or stock-based comp to exclude them from burn — this is the D&A add-back that most calculators skip.
04
Read the full picture
Get gross and net burn, both runways, a verdict, bear/bull scenarios, and a 12-month cash projection — everything for a board update.
Steps to use the Startup Burn Rate Calculator: Enter cash and expenses, Add monthly revenue, Adjust for non-cash (optional), Read the full picture.
Formula
The burn rate and runway formulas
Standard cash-flow math, sourced from Wall Street Prep, Stripe, and Mercury — not simplified.
01
Gross burn rate
Gross Burn = Monthly Expenses − Non-Cash Charges (D&A)
Total cash leaving the business each month. Subtracting depreciation, amortisation, and SBC gives the actual cash cost, which is what matters for runway.
Example: $200,000 expenses − $20,000 D&A = $180,000 gross burn.
02
Net burn rate
Net Burn = Gross Burn − Monthly Revenue
The net cash consumed after revenue flows in. This is what your bank balance falls by each month. If revenue ≥ gross burn, net burn is zero (profitable).
Example: $180,000 gross burn − $80,000 revenue = $100,000 net burn.
03
Gross runway
Gross Runway (months) = Cash Balance ÷ Gross Burn
The worst-case floor: how long cash lasts if revenue stops entirely. Use this to stress-test.
Example: $1,200,000 ÷ $180,000 = 6.7 months gross runway.
04
Net runway
Net Runway (months) = Cash Balance ÷ Net Burn
The realistic figure: how long cash lasts at current spending and revenue levels. This is the number investors and boards ask for.
Example: $1,200,000 ÷ $100,000 = 12.0 months net runway.
Worked example
Series A startup: $1.2M cash, $200K expenses, $80K revenue
See why the gross vs net distinction changes the picture.
Scenario
A startup has $1,200,000 in the bank, spends $200,000/month, and collects $80,000/month in revenue. No D&A. What is the burn rate and runway?
1
Step 1 · Gross burn
Monthly expenses minus non-cash: $200,000 − $0 = $200,000 gross burn. Every month, $200,000 in cash obligations are due regardless of revenue.
Gross burn: $200,000/month
2
Step 2 · Net burn
Subtract revenue: $200,000 − $80,000 = $120,000 net burn. This is the amount the bank balance actually drops each month.
Net burn: $120,000/month
3
Step 3 · Runway
Gross runway = $1,200,000 ÷ $200,000 = 6.0 months (worst-case, no revenue). Net runway = $1,200,000 ÷ $120,000 = 10.0 months (realistic). The $80K revenue buys 4 extra months.
Net runway: 10.0 months | Gross: 6.0 months
4
Step 4 · Scenario stress-test
If burn rises 20%: net burn = $144K, runway shrinks to 8.3 months (concerning). If burn falls 20%: net burn = $96K, runway extends to 12.5 months (comfortable). The current 10-month position is a single hire away from the "concerning" zone.
Bear: 8.3 mo | Bull: 12.5 mo
The takeaway
10 months sounds fine until you remember fundraising takes 3–6 months. This startup should start raising within the next 1–2 months. The 6.0-month gross runway shows how fragile the position is if revenue growth stalls.
Runway benchmarks
What runway position to aim for
Widely used by founders and investors to assess urgency. Runway < 12 months means the fundraise process should already be underway.
| Metric | Poor | Average | Good | Excellent |
|---|---|---|---|---|
| Net runway status | Critical (<6 mo) | Concerning (6–12 mo) | Comfortable (12–18 mo) | Healthy (>18 mo) |
| Fundraise lead time | Process already late | 3–6 months typical | Runway to be selective | Runway to plan next milestone |
| Revenue coverage | 0% (pre-revenue) | 20–40% of expenses | 40–70% of expenses | >70% (near breakeven) |
| Net burn vs prior mo | Rising >10% | Rising 0–10% | Flat | Falling (revenue growth) |
Why this calculator
Calcrux vs other burn rate calculators
Most free burn rate tools ask for one number (monthly expenses) and return one number (months of cash). That misses the gross/net distinction that every investor will ask about.
| Feature | Calcrux | Typical free tool | Spreadsheet |
|---|---|---|---|
| Separates gross and net burn | Manual | ||
| D&A / non-cash add-back | Manual | ||
| Both gross and net runway | Manual | ||
| Bear / bull scenario runway | Manual | ||
| Runway status verdict | |||
| Monthly cash projection chart | Charts | ||
| Fundraise timing guidance | |||
| Any currency | Usually USD |
Common mistakes
How burn rate calculations go wrong
Confusing gross burn with net burn
Why it matters
Telling an investor you have "8 months of runway" when you mean gross runway (no revenue), while net runway is 14 months, looks like you don't understand your own finances.
Fix
Know both numbers. Gross runway is the worst-case floor; net runway is what you'll actually report. This calculator shows both.
Including non-cash items in burn
Why it matters
Depreciation on equipment and stock-based compensation appear on the P&L but do not consume cash. Including them overstates your burn rate and understates runway.
Fix
Enter D&A in the non-cash field to subtract it from expenses. This gives true cash burn, which is what runway is based on.
Waiting too long to start fundraising
Why it matters
Most founders think of 6 months as "enough time." A typical raise takes 3–6 months from first outreach to wire. Starting at 6 months gives you no buffer if a lead takes longer to close.
Fix
Start fundraising when net runway hits 12 months. This calculator flags the 12-month mark as "concerning" and prompts action.
Not stress-testing against a burn increase
Why it matters
Runway at current burn is only safe until the next hire, vendor contract, or spending spike. Founders are consistently surprised by how fast burn jumps.
Fix
Check the bear-scenario runway (burn +20%). If it falls under 12 months, you have less margin than you think.
Using revenue bookings instead of cash collected
Why it matters
Annual SaaS contracts booked in month 1 but collected over 12 months inflate revenue in the month of signing and distort net burn. Burn must use actual cash flows.
Fix
Enter cash collected, not bookings or ARR. For monthly subscriptions this is the same; for annual contracts, divide by 12.
Tips
Manage burn like a CFO
Start fundraising at 12 months
The moment net runway hits 12 months, begin investor outreach — not at 6. A typical raise takes 3–6 months and you need a buffer.
Track net burn monthly
A burn that rises 10% month-over-month is a signal, not a number. Update this calculator every month-end to catch trends early.
Know your gross runway floor
Gross runway tells you the worst-case if revenue stalls. If it's under 6 months, your entire business depends on continued revenue — stress-test that assumption.
Size your raise correctly
Take the 12-month cash outflow figure and add 20–30% buffer for deal timing and post-close ramp — that is the minimum raise size to keep you safe.
Model the bear scenario first
Before every board meeting, check the bear runway (burn +20%). If it's in the concerning zone, you're already in a position that needs discussion.
Separate spend from burn
Not all spend reduces runway equally — revenue-generating spend (sales, paid ads that convert) reduces net burn through revenue faster than it increases gross burn.
Use cases
When founders reach for this calculator
The Startup Burn Rate Calculator works across every stage of the workflow.
Board meeting prep
Compute the two burn numbers (gross and net) and the runway verdict before a board meeting so you're never caught off-guard.
Deciding when to raise
Check net runway, compare it to the 12-month fundraise-start benchmark, and decide whether to begin investor outreach now.
Sizing a fundraise
Use the 12-month cash outflow to set a minimum raise target, then add buffer for the time between close and first deployment.
Evaluating a hiring plan
Model the impact of adding two engineers (gross burn +$40K/month) on bear-scenario runway before committing to the hire.
Investor due diligence
Verify a startup's stated runway by entering their figures here to cross-check whether they're reporting gross or net burn.
Cost-reduction planning
Use the bull scenario (burn −20%) to quantify what a cost-reduction round would actually buy in additional runway.
Glossary
Burn rate vocabulary
Every important term you'll encounter in this calculator and the broader topic.
- Gross burn rate
- Total cash expenses per month before subtracting revenue — the floor cost of keeping the business running regardless of revenue.
- Net burn rate
- Cash consumed after revenue: gross burn minus revenue. The actual monthly drop in your bank balance. This is the number for computing runway.
- Cash runway
- How many months the current cash balance lasts at the current net burn rate. Gross runway uses gross burn; net runway uses net burn.
- D&A add-back
- Depreciation and amortisation subtracted from expenses to get cash burn — because D&A appears on the P&L but does not consume cash.
- Bear / bull scenario
- Runway at higher (bear: +20%) or lower (bull: −20%) burn than today — to stress-test whether the current position is robust or fragile.
- Default alive / default dead
- Paul Graham's framing: a startup is "default alive" if it will reach profitability before running out of cash at the current trajectory; "default dead" if it won't. Net runway vs profitability timeline is the test.
Help & answers
Frequently asked questions
Everything you need to know about how the Startup Burn Rate Calculator works.
01What is startup burn rate and how is it calculated?
Burn rate is how much cash a startup consumes each month. Gross burn = monthly expenses − non-cash charges (D&A). Net burn = gross burn − monthly revenue. Net burn is the correct number for calculating runway because it reflects actual cash depletion.
02What is the difference between gross burn and net burn?
Gross burn is total monthly cash expenses before revenue. Net burn subtracts revenue from gross burn — it's the real drop in your bank balance each month. A startup with $200K expenses and $80K revenue has a $120K net burn, not $200K.
03How do you calculate startup runway?
Net runway = cash balance ÷ net burn rate. If you have $1.2M cash and burn $120K/month net, you have 10 months. Gross runway = cash ÷ gross burn — the worst-case if revenue stops. Both are important.
04How many months of runway should a startup have?
More than 18 months is healthy; 12–18 is comfortable; 6–12 is concerning and fundraising should already be underway; under 6 is critical. A standard fundraise takes 3–6 months to close, so starting at 6 months leaves no buffer.
05When should a startup start fundraising?
When net runway reaches 12 months. That gives 3–6 months for the process and a 6-month buffer. Most founders wait too long — starting at 6 months is already behind because term sheets and due diligence take time.
06What is the D&A add-back in burn rate calculations?
Depreciation and amortisation (D&A) appear as expenses on the P&L but don't consume cash. Subtracting them from monthly expenses gives the true cash burn — the amount that actually leaves your bank account.
07Should I use gross revenue or cash collected for burn rate?
Cash collected, not bookings. For monthly subscriptions they're the same. For annual contracts, use monthly cash receipts (total ÷ 12), not the full booking value — burn must reflect actual cash flows.
08How much should a startup raise to extend runway?
Take the 12-month cash outflow and add 25–30% for timing buffer. If net burn is $120K/month, a 12-month outflow is $1.44M — so raise at least $1.8M to safely fund the next year with headroom.
09Does this burn rate calculator work for any currency?
Yes — fully global. Enter amounts in your own currency (USD, GBP, EUR, INR, AUD and more) and all results come back in it. The burn and runway math is universal.
10What is "default alive" vs "default dead"?
Paul Graham's test: a startup is default alive if it reaches profitability before running out of cash at the current trajectory; default dead if not. Net runway vs months-to-profitability is the calculation.
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Category
Startup & Business Intelligence
Subcategory
startup finance
Availability
Global · 9 markets
Price
Free forever
Topics
startup burn rate calculatorburn rate calculatorstartup runway calculatorcash runway calculatornet burn rategross burn ratemonthly burn ratehow long will my cash laststartup cash flow calculatorpre-seed burn rate
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