Burn Rate & Runway Calculator
Gross burn, net burn, and how long the cash lasts, with revenue growth taken into account.
Gross burn is total spend; net burn subtracts revenue. With revenue growing, runway is simulated month by month rather than divided, because burn shrinks as revenue climbs.
Gross burn is everything you spend in a month. Net burn subtracts revenue, and it is the number that actually drains the bank account. Runway is how many months of net burn the cash covers.
Worked example. With $500,000 in the bank, $20,000 of monthly revenue and $70,000 of monthly expenses, net burn is $50,000 and runway is 10 months.
Frequently asked questions
What is the difference between gross and net burn?
Gross burn is total monthly spend, ignoring revenue. Net burn is spend minus revenue, the true drain on cash. A company with $200,000 of costs and $150,000 of revenue has a $200,000 gross burn and a $50,000 net burn, and only the second determines how long it survives.
Should runway assume revenue growth?
Model both. Flat revenue is the honest worst case and the number to plan against. The growth case shows what has to be true for the company to save itself, which is useful for setting targets but dangerous as a planning assumption.
How much runway should I have before raising?
Most investors suggest starting a raise with 9 to 12 months of runway, because a round commonly takes 3 to 6 months to close. Starting at 6 months means negotiating from weakness; starting at 3 often means a bridge or a down round.
Does runway include planned hiring?
Only if you include those salaries in monthly expenses. Hiring plans are the most common reason real runway comes in shorter than modelled, so it is worth running the calculation at your expected future burn rather than today's.
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Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.