Business
Burn Rate & Runway Calculator
Calculate gross burn, current net burn, static runway, break-even revenue, and next-month revenue and net burn under the entered growth scenario. Use both views before building a dated cash forecast.
Gross monthly burn-
Current net burn-
Static cash runway-
Revenue needed for cash break-even-
Revenue after entered one-month growth-
Net burn after entered one-month revenue growth-
Exact scenario comparison
Monthly revenue growth (%) scenarios
Exact scenario comparisonMonthly revenue growth (%) changes while all other entered assumptions remain constant.
| Monthly revenue growth (%) | Gross monthly burn | Current net burn | Static cash runway | Revenue needed for cash break-even | Revenue after entered one-month growth | Net burn after entered one-month revenue growth |
|---|
How to use Burn Rate & Runway Calculator
- Enter unrestricted available cash, current monthly cash revenue, and current monthly cash expenses on a consistent basis.
- Review gross burn, net burn, static runway, cash break-even revenue, and the separate next-month growth sensitivity.
- Build a dated forecast for hiring, revenue collection, financing, taxes, capital spending, and minimum reserves before setting an action deadline.
Calculator guide
Understanding Burn Rate & Runway Calculator
Runway translates a current monthly cash deficit into approximate months before available cash is consumed. The headline result remains static, while a separate one-month sensitivity applies the entered revenue-growth rate to next-month revenue and net burn.
Calculation method
How the calculation works
Subtract current monthly revenue from expenses for the static runway, then apply the entered growth rate once to show next-month revenue and net-burn sensitivity. Subtract current monthly revenue from expenses for the static runway, then apply the entered growth rate once to show next-month revenue and net-burn sensitivity.
Worked situations
Practical examples
- Monthly expenses of $145,000 and cash revenue of $80,000 create a current net burn of $65,000.
- Available cash of $650,000 divided by a $65,000 net burn produces a static runway of 10 months.
- At 3% growth, $80,000 of revenue becomes $82,400 next month and net burn falls from $65,000 to $62,600 if expenses stay fixed.
Better inputs
Useful tips
- Use unrestricted cash actually available for operations and exclude customer funds, restricted deposits, or undrawn financing.
- Calculate burn from cash movements over several recent months when collections and payments are volatile.
- Maintain a dated monthly forecast alongside the static runway and track the earliest financing or restructuring decision date.
Before relying on the result
Limitations and common mistakes
- The headline runway holds current revenue and expenses constant; the growth field affects only the explicitly labeled one-month sensitivity.
- One-time receipts and payments, working-capital timing, debt service, financing, taxes, capital spending, and minimum cash reserves are excluded.
- When monthly revenue equals or exceeds expenses, a finite static runway based on positive net burn is not meaningful.
Reference
Key terms
- Gross burn
- Total monthly cash expenses before subtracting operating cash revenue.
- Net burn
- Monthly cash expenses minus monthly cash revenue, floored at zero in this model.
- Static runway
- Available cash divided by current net burn under unchanged monthly conditions.
- Cash break-even
- Monthly cash revenue equal to the entered monthly cash expenses.
- Next-month sensitivity
- Revenue and net burn after applying the entered growth rate once while holding expenses fixed.
Important note
Calculated from the entered values using the displayed accounting method. Reconcile material decisions with source records and applicable accounting policy.
Frequently asked questions
Why is runway described as static?
The headline divides current cash by current net burn; the growth input is shown separately as a one-month revenue and net-burn sensitivity.
Does gross burn or net burn determine runway?
This calculator uses net burn after monthly cash revenue. Gross burn remains useful for understanding the full spending base.
What cash balance should be entered?
Use unrestricted cash available to fund operations after considering minimum reserves and amounts that cannot legally or operationally be used.
Can a growing company have improving revenue but shorter runway?
Yes. Hiring, inventory, customer acquisition, slow collections, and capital investment can increase cash outflow faster than collections grow.