Startup Burn Rate Calculator

How to Use This Calculator

1. Enter your Current Cash Balance, Monthly Gross Burn, and Monthly Revenue.
2. Gross burn, net burn, and runway months appear instantly.
3. Use Trend tab to average burn over 3 months.
4. Use Reach Profitability tab to project when revenue growth closes the gap.
5. Switch to Professional for burn multiple, default-alive status, and fixed vs variable split.

Formula

Example

Frequently Asked Questions

• What is gross burn rate? ▼
  Gross burn rate is the total amount of cash a startup spends each month, regardless of revenue. If you spend $150,000/month on salaries, rent, and tools, your gross burn is $150,000.
• What is net burn rate? ▼
  Net burn rate = monthly spend minus monthly revenue. If you spend $150,000 and earn $50,000 in revenue, net burn is $100,000/month. This is the true cash drain on your bank account.
• What is the burn multiple? ▼
  Burn Multiple = Net Burn / Net New ARR. It measures how much you burn for every dollar of new ARR added. Below 1x is excellent; above 2x is a warning sign. Coined by David Sacks.
• What does "default alive" mean? ▼
  Paul Graham's concept: if a startup can reach profitability with existing cash before running out — assuming current revenue growth — it is "default alive." Otherwise it is "default dead" and dependent on raising more capital.
• How much runway should a startup have? ▼
  Seed stage: 18 months minimum. Series A: 24 months. The general rule is to start fundraising 6–9 months before you run out — so you need at least 12 months of comfortable runway before initiating a raise.

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