Runway and Burn Rate Calculator
Calculate startup cash runway, net and gross monthly burn rate, zero-cash date, and target runway fundraising needs.
12-Month Cash Projection
| Mo | Starting Cash | Revenue | Expenses | Net Burn | Ending Cash |
|---|---|---|---|---|---|
| M1 | 200,000 | 5,000 | 25,000 | 20,000 | 180,000 |
| M2 | 180,000 | 5,000 | 25,000 | 20,000 | 160,000 |
| M3 | 160,000 | 5,000 | 25,000 | 20,000 | 140,000 |
| M4 | 140,000 | 5,000 | 25,000 | 20,000 | 120,000 |
| M5 | 120,000 | 5,000 | 25,000 | 20,000 | 100,000 |
| M6 | 100,000 | 5,000 | 25,000 | 20,000 | 80,000 |
| M7 | 80,000 | 5,000 | 25,000 | 20,000 | 60,000 |
| M8 | 60,000 | 5,000 | 25,000 | 20,000 | 40,000 |
| M9 | 40,000 | 5,000 | 25,000 | 20,000 | 20,000 |
| M10 | 20,000 | 5,000 | 25,000 | 20,000 | 0 |
| M11 | 0 | 5,000 | 25,000 | 20,000 | 0 |
| M12 | 0 | 5,000 | 25,000 | 20,000 | 0 |
Runway calculation is based on current cash balance and net burn rate (gross expenses minus revenue).
Plan your company’s survival timeline and cash requirements with accurate gross burn, net burn, and multi-month cash projections.
Formulas & Methodology
- Gross Monthly Burn:
Total Monthly Operating Expenses - Net Monthly Burn:
Gross Monthly Expenses - Monthly Revenue(when Expenses > Revenue) - Cash Runway (Months):
Current Cash Balance ÷ Net Monthly Burn - Estimated Zero-Cash Date:
Current Date + (Runway Months × 30.4375 days) - Target Capital Required:
Desired Runway Months × Net Monthly Burn - Funding Gap:
Max(0, Target Capital Required - Current Cash Balance)
Worked Acceptance Example
For a startup with:
- Current Cash Balance: $200,000
- Monthly Gross Expenses: $25,000
- Monthly Revenue: $5,000
The calculations are:
- Gross Monthly Burn:
$25,000.00 - Net Monthly Burn:
$25,000 - $5,000 = $20,000.00 - Runway in Months:
$200,000 ÷ $20,000 = 10.0 months - Funding Gap for 18 Months Runway:
(18 × $20,000) - $200,000 = $160,000.00
Frequently Asked Questions
What is the difference between gross burn and net burn?+
Gross burn is the total amount of cash your company spends each month in operating expenses. Net burn is gross burn minus your monthly revenue (the actual net cash deficit leaving your bank account each month).
How do you calculate startup cash runway?+
Startup runway is calculated by dividing your total cash balance by your net monthly burn rate. For example, $200,000 cash with $20,000 net monthly burn equals 10 months of runway.
What happens if monthly revenue exceeds monthly expenses?+
When monthly revenue is greater than operating expenses, your business has a positive cash flow and is profitable. In this state, your runway is considered infinite because cash reserves are growing rather than depleting.
How much runway should an early-stage startup maintain?+
Most venture capitalists and startup advisors recommend maintaining between 18 and 24 months of runway to provide sufficient buffer for product development, market testing, and future fundraising cycles.