Burn Rate & Runway Calculator

Calculate when your startup will run out of money. Get instant insights into your cash runway, burn rate, and zero cash date with visual projections.

Total cash available in your business accounts
How much cash you spend each month (expenses minus revenue)
Your current monthly recurring revenue (optional)
Expected monthly revenue growth percentage (can be 0)

Why Use Our Burn Rate Calculator?

Instant Insights

Get immediate visibility into your cash runway and zero cash date. No complex spreadsheets or formulas required.

Visual Projections

See your cash balance over time with an interactive chart. Understand exactly when you need to raise funds or cut costs.

Growth-Aware

Factor in revenue growth to get accurate projections. See how increasing revenue extends your runway automatically.

100% Private

All calculations happen in your browser. Your financial data never leaves your device and isn't stored anywhere.

Mobile-Friendly

Calculate your runway on any device. Perfect for quick checks during investor meetings or board discussions.

Completely Free

Professional-grade financial planning tool at no cost. No sign-ups, subscriptions, or hidden fees required.

How to Calculate Your Startup Runway

1

Enter Your Cash Balance

Input the total amount of cash currently available in your business bank accounts. This includes all liquid assets you can access for operations.

2

Add Your Monthly Burn Rate

Calculate your monthly expenses minus revenue. If you spend $50k/month and earn $20k, your burn rate is $30k. Include all operational costs: salaries, rent, software, marketing, etc.

3

Include Revenue & Growth

Enter your current monthly revenue and expected growth rate. Even modest growth (5-10% monthly) can significantly extend your runway over time.

4

Review Your Projection

Analyze your zero cash date and monthly projections. Use this data to plan fundraising timelines, adjust spending, or accelerate revenue growth.

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Frequently Asked Questions

Burn rate is the amount of cash your business spends each month. It's critical for startups because it determines how long you can operate before running out of money (your runway). Understanding your burn rate helps you make informed decisions about fundraising, cost-cutting, and growth strategies. Most investors closely monitor burn rate as a key metric of financial health and operational efficiency.

Runway is calculated by dividing your current cash balance by your monthly burn rate. For example, if you have $120,000 in the bank and burn $10,000 per month, your runway is 12 months. Our calculator also factors in revenue growth to give you a more accurate projection. If your revenue is growing, it reduces your net burn rate over time, potentially extending your runway significantly.

A healthy burn rate depends on your industry, stage, and funding. Generally, pre-seed startups should aim for 12-18 months of runway, while post-seed companies should maintain 18-24 months. The key is ensuring you have enough runway to reach your next milestone or funding round. If your runway drops below 6 months, it's typically considered a critical situation requiring immediate action.

The most effective ways to reduce burn rate include: switching from full-time employees to freelancers (saving 30-40% on overhead), renegotiating vendor contracts, downsizing office space, cutting unnecessary software subscriptions, reducing marketing spend, and optimizing operational efficiency. Focus on cutting costs that don't directly impact revenue generation or product development.

Start fundraising when you have 9-12 months of runway remaining. Fundraising typically takes 3-6 months from first meeting to closed round, so you need buffer time. Starting earlier also puts you in a stronger negotiating position—investors sense desperation when runway is critically low. Use this calculator monthly to stay ahead of cash needs.

Gross burn is your total monthly expenses without considering revenue. Net burn is your monthly expenses minus monthly revenue—it's the actual rate at which you're depleting cash. For example, if you spend $100k monthly and earn $30k, your gross burn is $100k but your net burn is $70k. Net burn is more important for runway calculations.

This calculator works best for businesses with predictable monthly expenses and revenue patterns, like SaaS startups, service businesses, and e-commerce companies. It's less accurate for businesses with highly seasonal revenue, project-based income, or irregular expense patterns. For these cases, consider running multiple scenarios with different monthly figures to understand your range of possible outcomes.

Calculate your runway monthly as part of your financial review process. Update it immediately after major events like funding rounds, significant hires, or large expenses. Tracking monthly helps you spot trends early—if your burn rate is increasing without corresponding revenue growth, you need to act quickly. Many successful founders review runway weekly during critical growth phases.

Understanding Startup Burn Rate and Financial Runway

Every startup founder faces the same critical question: how long can we operate before running out of money? This is where understanding burn rate and runway becomes essential. Your burn rate is the speed at which your company spends cash, while your runway is the time remaining before your cash balance hits zero.

Why Burn Rate Management Is Critical for Survival

Poor burn rate management is one of the leading causes of startup failure. According to research, 29% of startups fail because they run out of cash. The challenge isn't just about having money—it's about understanding how quickly you're spending it and having a clear picture of when you'll need to raise more capital or achieve profitability.

Smart founders monitor their burn rate religiously. They understand that runway isn't just a number—it's a strategic planning tool. With 12 months of runway, you have time to execute your plan confidently. With 6 months, you're in crisis mode. The difference in decision-making quality between these scenarios is dramatic.

The Real Cost of Fixed Overhead

For most startups, payroll represents 60-80% of monthly burn. This makes sense—great teams drive success. However, the traditional employment model creates significant fixed costs that burn through cash whether you're generating revenue or not. Salaries, benefits, payroll taxes, and office space quickly add up to substantial monthly obligations.

This is where strategic use of freelance talent can transform your financial runway. Companies that build hybrid teams—combining core full-time employees with project-based freelancers—typically reduce their fixed overhead by 30-40%. This flexibility is invaluable during early stages when revenue is unpredictable.

Using This Calculator to Plan Your Financial Strategy

Our burn rate calculator helps you model different scenarios quickly. Input your current situation to establish your baseline, then experiment with variables. What happens if you reduce burn rate by 20%? How does 10% monthly revenue growth impact your runway? These insights help you make data-driven decisions about fundraising timing, growth investments, and cost optimization.

The calculator also factors in revenue growth, which many simple runway calculators ignore. This is crucial because even modest revenue growth can dramatically extend runway. A startup with $100k cash and $25k monthly burn has 4 months of runway with flat revenue. Add 15% monthly revenue growth, and suddenly you're approaching profitability before running out of cash.

When to Take Action Based on Your Runway

Different runway lengths require different strategies. With 18+ months of runway, focus on growth and achieving key milestones. With 12-18 months, start preparing for your next funding round while executing your current plan. With 6-12 months, actively fundraise or implement cost reduction measures. Below 6 months, you're in critical mode—aggressive action is required immediately.

The key is never letting yourself get surprised. Monthly runway calculations should be as routine as checking your email. Set up a simple spreadsheet or use this calculator to track your numbers consistently. Share runway status with your leadership team and board—transparency about financial health is crucial for good governance.

Extending Runway Without Sacrificing Growth

Many founders think extending runway means cutting growth initiatives, but that's not always true. Smart runway extension focuses on converting fixed costs to variable costs. Instead of hiring a full-time designer at $100k annually plus benefits, hire top freelance designers for specific projects. You get the same quality work at a fraction of the committed expense.

This approach works across functions—marketing, development, design, writing, analytics, and more. Platforms like Freelancea make it easy to access vetted talent on-demand, paying only $1 to start a contract with zero platform fees for clients. The financial flexibility this creates can be the difference between running out of cash and reaching profitability.