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Burn Rate Calculator

Enter starting cash, monthly revenue, and expenses to see your net burn rate and how many months of runway you have.

Updated June 2026 · Editorial standards

Startup Financials

$
$
$
Net Burn Rate / mo
$100,000
Gross Burn Rate / mo
$150,000
Runway
10.0 months

Net burn: $100,000/mo. At this rate, cash lasts 10.0 months. Investors expect 12–18 months of runway after a funding round. Net burn = expenses minus revenue. Gross burn ignores revenue. Break-even happens when monthly revenue equals monthly expenses.

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the burn rate calculator — startup runway?

In short

Net burn rate = monthly expenses − monthly revenue. If a startup has $500K in cash and burns $50K/month net, it has 10 months of runway. Most VCs want to see 12–18 months of runway after a funding round.

Calculates net burn rate, gross burn rate, months of runway, and break-even revenue for startups and businesses.

How to use this calculator

  1. 1Enter your starting cash balance.
  2. 2Enter monthly revenue (what you collect, not invoiced).
  3. 3Enter total monthly expenses (all costs: payroll, rent, software, COGS, etc.).

The formula

net burn=expenses−revenue
runway=cash balancenet burn / mo
Net Burn = E − R; Gross Burn = E; Runway (months) = C ÷ Net Burn; Break-Even Revenue = E
E
— Monthly Expenses
R
— Monthly Revenue
C
— Cash Balance

Worked example

The scenario

$1M cash, $50K monthly revenue, $150K monthly expenses.

gives

The result

Net burn = $100K/mo. Gross burn = $150K/mo. Runway = 10 months.

Common use cases

  • Track when you need to raise your next funding round.
  • Identify how much revenue growth is needed to extend runway.
  • Stress-test scenarios (what if we cut costs by 20%?).
  • Communicate financial health to investors and board.

Limitations & assumptions

  • Assumes constant burn and revenue — real curves are non-linear.
  • Does not account for seasonal revenue variations.
  • Capital expenditures or one-time costs can spike net burn.
  • Use alongside a rolling 13-week cash flow forecast for precision.

Frequently asked questions

Most founders recommend starting fundraising with at least 12 months of runway remaining. Raising takes 3–6 months, so with 12 months you have a buffer before getting desperate.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.