Finance calculator
Burn Rate & Runway Calculator
This burn rate calculator estimates your net monthly burn (cash out minus cash in) and your runway — the number of months your current cash will last at that burn. It's a planning estimate; it assumes a steady burn and doesn't model future fundraising, revenue growth, or one-off costs.
How to use this calculator
- Enter your current cash on hand (bank balance available to spend).
- Add your average monthly expenses and monthly revenue.
- Read the net burn and runway — and stress-test it with lower revenue or higher spend.
Formula
- Net monthly burn = monthly expenses - monthly revenue
- Cash runway (months) = cash on hand / net monthly burn
- If revenue is at or above expenses, you are cash-flow positive and runway is effectively unlimited.
Example calculation
With $500,000 in the bank, $80,000 in monthly expenses and $30,000 in monthly revenue, net burn is $50,000 a month and runway is about 10 months.
How to interpret the results
- Many investors like to see at least 12-18 months of runway after a raise.
- Net burn — not total spend — is what actually drains the bank, so growing revenue extends runway as much as cutting costs.
- Re-run with a conservative revenue case; runway shrinks fast if growth stalls.
Frequently asked questions
What is a good cash runway?
Many startups aim to keep at least 12-18 months of runway, and to start raising again with 6-9 months left. The right number depends on how predictable your revenue and fundraising are.
What's the difference between gross and net burn?
Gross burn is total cash you spend each month. Net burn subtracts the revenue you bring in. Runway is based on net burn, because revenue offsets some of the spend.
How do I extend my runway?
Either reduce net burn (cut costs or grow revenue) or add cash (raise funding or take on debt). Because runway is cash ÷ net burn, even a modest revenue increase can add months.
Planning disclaimer
MoneyHackWise calculators are for general informational and planning purposes only and do not provide financial, investment, tax, legal, accounting, lending, or business advice. Results are estimates based on the inputs and assumptions shown.