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Burn Rate Calculator
Measure average net cash consumed and divide current cash by that burn rate.
Burn Rate Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
Cash falling from $900,000 to $750,000 over three months implies $50,000 monthly burn and 15 months runway at $750,000 cash.
How this calculation works
The calculator measures net change in cash across the period and averages it by months. If current cash is provided, runway divides that balance by average monthly burn.
How to interpret the result
Historical net burn is not a forecast. Financing receipts, capital expenditure, working-capital swings, annual bills, hiring, and seasonality can materially change runway.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Formula and example
Cash falling from $900,000 to $750,000 over three months implies $50,000 monthly burn and 15 months runway at $750,000 cash.
Common use cases
- Monitor startup cash consumption.
- Estimate runway.
- Compare actual burn with plan.
Burn Rate Calculator FAQ
How is burn rate calculated?
The calculator measures net change in cash across the period and averages it by months. If current cash is provided, runway divides that balance by average monthly burn.
What should I check before using the result?
Historical net burn is not a forecast. Financing receipts, capital expenditure, working-capital swings, annual bills, hiring, and seasonality can materially change runway.
Does this calculator provide financial advice?
No. It applies the stated formula to your inputs for educational planning. Validate definitions, timing, accounting treatment, and assumptions before acting.