Burn Rate Calculator

Calculate gross and net burn rate from starting cash, ending cash and revenue — see monthly and daily burn.

Burn Rate Calculator

Calculate gross and net burn rate from starting cash, ending cash and revenue — see monthly and daily burn.

Starting cash ($)($)

Ending cash ($)($)

Months

Revenue in period ($, optional)($)

Enter values above and click Calculate — results will appear here with the formula explained.

Gross burn = (start − end) + revenue; Net burn = start − end; Monthly = burn / months

How does this work?

Burn rate is how fast a startup spends cash. Gross burn is total expenses: starting cash minus ending cash plus revenue (since revenue offsets spend). Net burn is simply cash decline. Monthly burn divides by months, daily by 30. Tracking gross vs net matters — a $80k net burn with $30k revenue means $110k gross spend, so cutting $20k saves 2.5 months runway, not 1.

To use the Burn Rate Calculator, enter starting and ending cash and months. Add revenue if any to split gross and net. The tool shows monthly and daily gross/net burn and burn multiple. Example: $500k to $420k over 3 months with $30k revenue is $80k net ($26.7k/mo) and $110k gross ($36.7k/mo). Use the example to avoid understating burn by ignoring revenue.

Disclaimer: Results are estimates for informational purposes only and do not constitute professional financial advice.

Quick Answer

Burn Rate Calculator: Calculate gross and net burn rate from starting cash, ending cash and revenue — see monthly and daily burn. Formula: Gross burn = (start − end) + revenue. Example: $500k → $420k over 3 months, $30k revenue: net burn $80k ($26.

How to Use This Calculator

1Enter starting cash, ending cash and months in period for cash change calculation.
2Add revenue in period to split gross burn (total spend) and net burn (cash decline).
3See monthly and daily burn instantly and compare gross vs net to find true spend.

Formula Used

Gross burn = (start − end) + revenue; Net burn = start − end; Monthly = burn / months

Worked Example

$500k → $420k over 3 months, $30k revenue: net burn $80k ($26.7k/mo), gross burn $110k ($36.7k/mo), daily net $889, gross $1,222.

Related Calculators

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Frequently Asked Questions

QWhat is gross vs net burn?

Gross is total expenses. Net is cash decline. With revenue, gross = net + revenue. Investors watch gross to see spend discipline.

QWhat is good burn multiple?

Burn multiple = net burn / net new ARR. Under 1.5 is efficient, 1.5-2 is okay, over 3 is burning too much per $ ARR.

QHow to extend runway?

Cut gross burn or grow revenue. $10k/mo cut adds 1 month per $10k cash. $10k revenue adds same as $10k cut on net.

Sources & updates

Formulas are standard public references (see our methodology). External standards are cited in the text where they apply.

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Formula Used

Gross burn = (start − end) + revenue; Net burn = start − end; Monthly = burn / months

Frequently Asked Questions

QWhat is gross vs net burn?

Gross is total expenses. Net is cash decline. With revenue, gross = net + revenue. Investors watch gross to see spend discipline.

QWhat is good burn multiple?

Burn multiple = net burn / net new ARR. Under 1.5 is efficient, 1.5-2 is okay, over 3 is burning too much per $ ARR.

QHow to extend runway?

Cut gross burn or grow revenue. $10k/mo cut adds 1 month per $10k cash. $10k revenue adds same as $10k cut on net.