Burn rate calculator
Gross and net burn from monthly costs and revenue.
FreeRuns in your browserNo signupUpdated 2026-11-05
The figures below are examples. Replace them with your own.
Costs paid in the period
Take the numbers from your bank statements, not your budget. Leave out one-off items such as a laptop refresh if you want the recurring burn.
Gross burn
$72,000
All cash going out per month
Net burn
$54,000
Costs minus revenue per month
Runway at this net burn
8.3 months
$450,000 ÷ $54,000 a month. Revenue covers 25% of costs.
Under 12 months of cash
| Cost | Per month | Share of gross burn |
|---|---|---|
| Salaries and contractors | $52,000 | 72% |
| Marketing | $8,000 | 11% |
| Rent and office | $6,000 | 8% |
| Software and hosting | $3,500 | 5% |
| Other | $2,500 | 3% |
| Gross burn | $72,000 | 100% |
| Less revenue received | − $18,000 | |
| Net burn | $54,000 | $648,000 a year |
Lines are sorted by size. A saving on a large line moves runway more than the same percentage off a small one.
About this tool
How it works and how to read the result.
Need this done for you?
Web app & SaaS development
SaaS products and web apps, from first version to scale.
See the serviceWhat it does
A burn rate calculator shows how fast a company is spending its cash. List your costs for the period, add the revenue you received, and the page returns gross burn (everything going out), net burn (going out minus coming in), the share of costs your revenue covers, and how many months of runway your bank balance gives at that net burn. A breakdown table ranks each cost line by its share of the total, so you can see where the money goes. It runs in your browser and nothing is sent anywhere.
How to use it
- Pick a currency and the length of the period your figures cover: one month, a quarter, six months or a year.
- List your costs. Rename, add or remove lines to match your own accounts.
- Enter the revenue you actually received in the same period.
- Enter today's bank balance for the runway figure.
- Copy the summary to share with a co-founder, board or accountant.
How to read the result
The example lists 72,000 of monthly costs: 52,000 on salaries and contractors, 6,000 on rent, 3,500 on software and hosting, 8,000 on marketing and 2,500 on everything else. Gross burn is 72,000 a month. Revenue received is 18,000, so net burn is 72,000 − 18,000 = 54,000 a month, or 648,000 a year. Revenue covers 25% of costs.
With 450,000 in the bank, runway is 450,000 ÷ 54,000 = 8.3 months. Salaries make up 72% of gross burn, so in this example the decisions that move runway are about hiring and revenue. Halving the 2,500 "other" line moves runway by less than a week.
The formulas:
- Gross burn = total costs ÷ months in the period
- Net burn = (total costs − revenue received) ÷ months in the period
- Runway = cash in the bank ÷ net burn
This is a snapshot at today's rates. If revenue or costs are changing each month, a flat runway figure will be off. Use the burn here as the starting point for a forecast, and check whether your prices cover your costs with the break-even calculator or the profit margin calculator.
If a large part of your burn goes on building product, our web app development service can help you plan what to build first.
Questions
Frequently asked.
What is the difference between gross burn and net burn?
Gross burn is all the cash you spend in a month: salaries, rent, software, marketing and everything else. Net burn is gross burn minus the cash that came in from customers. Net burn is what actually shrinks the bank balance, so it is the figure runway is based on. Gross burn shows how expensive the company is to run.
Should I use one month or an average?
An average is usually better. A single month can include an annual software renewal, a late customer payment or a bonus that makes it look worse or better than it is. Enter the totals for the last quarter and choose 3 months, and the calculator divides everything by three.
Do one-off costs count towards burn?
They count towards the cash you spent, so include them if you want to know where the money went. For planning, many founders track recurring burn without one-off items such as equipment or a legal settlement, then hold a separate reserve for surprises. Remove the line, or set it to zero, to see the difference.
More in Business & pricing
Related tools.
Your next move
Like what you see? Tell us about it.
A process that takes too long, a website that undersells you, or an idea ready to take shape. Tell us where you are and we will suggest a useful next step.
India · Working with clients worldwide