Startup Burn Rate Calculator
Calculate startup burn rate and runway. See how many months of cash you have left.
By Konstantin Iakovlev · Updated September 2026 · Source: SBA — Business Guide
Gross Burn
$50,000.00
Net Burn
$35,000.00
Runway
14.3 mo
Burn Rate Analysis
| Monthly Expenses | $50,000.00 |
| Monthly Revenue | $15,000.00 |
| Net Burn Rate | $35,000.00 |
| Cash in Bank | $500,000.00 |
| Runway | 14.3 months |
| Cash Runs Out | December 2027 |
Cash Needed to Reach Target Runway
| 12 months runway | Already covered |
| 18 months runway | $130,000.00 |
| 24 months runway | $340,000.00 |
Use the Startup Burn Rate Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
How fast a startup spends cash, and how long that cash lasts, sits at the center of planning, fundraising, and survival. This tool turns your numbers into a monthly burn figure and a runway, showing how many months of operating capacity remain before you need more funding or reach profitability.
Net Burn Rate is the engine here: Total Monthly Expenses minus Total Monthly Revenue. Dividing your Current Cash Balance by that net burn gives your runway. The calculation assumes a steady burn going forward, but you can change the inputs to test different scenarios.
Hidden costs are where forecasts go wrong, whether it is creeping software subscriptions or an unexpected legal bill. Building in a contingency buffer, often 10-20% of total expenses, absorbs the surprises. Because burn shifts as the business scales, recalculate on a regular cadence, at least once a quarter.
Example: Early-Stage SaaS Startup
- 1 An early-stage SaaS startup has a current cash balance of $250,000. Its average monthly expenses are $60,000 (including salaries, marketing, cloud hosting, and rent), and its average monthly revenue is $15,000 from subscriptions.
- 2 First, the Net Burn Rate: $60,000 (Expenses) − $15,000 (Revenue) = $45,000 per month; the gross burn is the full $60,000. Next, the Runway: $250,000 (Cash Balance) / $45,000 (Net Burn Rate) = 5.56 months, which the calculator shows as 5.6 months.
- 3 The calculator's Cash Runs Out date adds the 5 whole months of runway to today's date. To stretch the runway to 18 months at this burn, the startup would need $45,000 × 18 = $810,000, or $560,000 more than it has.
- 4 If nothing changes, the cash is gone in under six months. That is the deadline for raising new funding, growing revenue, or cutting expenses to extend the operating window.
Source: SBA — Business Guide · Last updated: September 2026
Frequently Asked Questions
What is the difference between gross and net burn rate?
How many months of runway should a startup have?
How do I calculate runway?
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