Net Burn Rate
See how much cash a business burns monthly and its runway.
About Net Burn Rate
Gross burn is total monthly spending, net burn subtracts revenue, and runway divides cash on hand by net burn to estimate months until funds run out. Runway is the single number that tells founders how long they can operate before more funding or profitability is required.
Formula
Net Burn Rate
Net burn = expenses - revenue; runway = cash / net burn
- net burn
- Cash consumed each month after incoming revenue
Worked example
With the default values below, Net Burn Rate returns Gross Burn of $45,000.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Monthly expensesminimum 0
- 45,000
- Monthly revenueminimum 0
- 15,000
- Cash on handminimum 0
- 180,000
Results
- Gross Burn
- $45,000.00
- Net Burn
- $30,000.00
- Cash Runway (months)
- 6.0
Step by step
- 1Values used
- 2Net Burn Rate
- 3Gross Burn= 45,000.00
- 4Net Burn= 30,000.00
- 5Cash Runway (months)= 6.0
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Net Burn Rate calculated?
Net burn = expenses - revenue; runway = cash / net burn Gross burn is total monthly spending, net burn subtracts revenue, and runway divides cash on hand by net burn to estimate months until funds run out.
Why does Net Burn Rate matter?
Runway is the single number that tells founders how long they can operate before more funding or profitability is required.
What values do I need to enter?
This calculator takes 3 inputs: Monthly expenses, Monthly revenue, Cash on hand. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.