Burn Rate Calculator

Add in a expense reduction rate or amount to optimise your burn rate and extent the runway
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What is Burn Rate?

Burn rate refers to the rate at which a company spends its capital, particularly venture capital, to finance overhead before generating positive cash flow from operations. It's a measure of how quickly a company uses up its cash reserves or investments. Burn rate is crucial for startups and growth-stage companies that have yet to reach profitability.

Types of Burn Rate

Gross Burn

Gross burn is the total amount of operating expenses a company incurs in a given month. It includes all cash spent on operations and growth, such as salaries, rent, utilities, and marketing expenses.

Net Burn

Net burn takes into account the company's revenues; it's the net cash flow out of the business each month. Net burn rate is calculated by subtracting the company's monthly revenue from its gross burn rate.

How to use this calculator?

Use this Burn Rate and Runway Calculator for easy financial planning. Input your data to quickly find your cash burn, end balance, and runway, plus explore expense adjustment impacts
Step 01
Begin by entering your starting cash balance, monthly expenses, and monthly revenue into the respective fields labeled "Current Balance," "Monthly Expenses," and "Monthly Revenue."
Step 02
Input the anticipated monthly growth percentage into the "Growth Rate" field.
Step 03
The calculator will then display your cash burn rate, your cash balance at the end of the month, and your financial runway.
Step 04
To increase your startup's financial runway and decrease the burn rate, enter any planned increases or decreases in expenses, along with the months when these changes will take effect, into the "Addition From" and "Reduction From" fields, respectively.

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