What is burn rate for a startup?

Q: What is burn rate for a startup?

Burn rate is how much cash a company spends per month. Gross burn is total monthly expenses. Net burn is expenses minus revenue. It determines how long your cash will last.

Burn Rate Calculator

Estimate monthly burn rate from spend and revenue.

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About This Calculator

Burn rate is how much cash a company consumes each month. Gross burn is total monthly expenses; net burn is expenses minus revenue. Net burn divided into cash on hand gives runway — the number of months before the business runs out of money. This is the most critical number for any pre-profitable startup.

Estimates only — not financial, tax, legal, or investment advice. Verify important results with a qualified professional before making decisions.

gross burn = monthly expenses; net burn = max(0, expenses − revenue); annual = net burn × 12