Skip to main content
DigiCalcs

How to Calculate Burn Rate

What is Burn Rate?

Burn rate is the speed at which a startup or business spends its cash reserves. Gross burn is total monthly spending; net burn is spending minus revenue. Runway = Cash reserves ÷ Net burn rate.

Step-by-Step Guide

  1. 1Add up all monthly outgoings (salaries, rent, servers, marketing, etc.) — this is gross burn
  2. 2Subtract monthly revenue — this gives net burn rate
  3. 3Divide remaining cash by net burn to find runway in months

Worked Examples

Input
Cash $500k · Gross burn $80k · Revenue $20k
Result
8.3 months runway
Net burn $60k → $500k ÷ $60k
Input
Cash $1M · Net burn $100k
Result
10 months runway
Time to raise or reach break-even

Ready to calculate? Try the free Burn Rate Calculator

Try it yourself →

Settings

PrivacyTermsAbout© 2026 DigiCalcs