Burn Rate Calculator

A burn rate calculator shows how quickly your business is spending cash each month, which is one of the most important numbers a founder, finance lead or investor watches. Gross burn is your total monthly operating spend, covering wages, rent, software, marketing and every other cash outgoing. Net burn is that spend minus the revenue you bring in over the same month, so it reflects the cash you actually lose once sales are taken into account. This tool takes two simple inputs, your monthly spend and your monthly revenue, and returns both figures so you can see the full picture at a glance. Early stage and growing companies use burn rate to judge how aggressive they can be, when they need to raise more capital, and how long their cash will last, often called the runway. A high gross burn is not always a problem if revenue is climbing fast, but a high net burn against a small cash balance is a warning sign. To use burn rate well, calculate it consistently each month using cash that has actually moved rather than accrued figures, watch the trend over three to six months instead of a single month, and pair it with your bank balance to estimate runway in months. If net burn is negative you are cash flow positive, which means your revenue covers your spend and your cash reserve is growing. Reviewing burn alongside your gross margin and customer growth gives you a clearer sense of whether spending is buying durable progress or simply funding losses, and it helps you make confident decisions about hiring, marketing and the timing of your next funding round.

Net burn = monthly spend - monthly revenue. Gross burn = monthly spend. Estimate only, not financial or tax advice.