Startup Burn Rate Calculator
Free startup burn rate calculator. Calculate net burn rate, gross burn rate, cash runway in months, and runway end date with projection chart.
About This Calculator
Burn rate is one of the most critical metrics for any startup. It tells you how quickly you are spending cash and how long you can operate before needing additional funding. This calculator provides both gross and net burn rates, plus a detailed cash runway projection.
Understanding your burn rate helps you make informed decisions about hiring, spending, and fundraising timing. Most successful startups maintain 18-24 months of runway.
Frequently Asked Questions
What is burn rate?
Burn rate is the rate at which a company spends its cash reserves, typically measured monthly. Gross burn rate is total monthly expenses. Net burn rate subtracts monthly revenue from expenses.
What is a good burn rate for a startup?
Aim for 18-24 months of runway. Early-stage startups should keep monthly burn under Rs 5-10 lakh ($50-100k) unless well-funded.
How to calculate cash runway?
Cash Runway = Current Cash Balance / Net Burn Rate. A projection chart shows monthly cash decline.
What is the difference between gross and net burn rate?
Gross burn is total expenses. Net burn subtracts revenue. Net burn gives a more accurate picture of cash consumption.
How to reduce burn rate?
Cut non-essential expenses, negotiate with vendors, switch to cheaper tools, focus on high-ROI activities, and increase revenue.
What is the runway rule for startups?
Always have 12-18 months of runway. Start fundraising when you have 6-9 months remaining.