Burn Rate Calculator
Calculate and analyze your company's cash consumption rate
Burn rate is the rate at which a company spends its cash reserves over time. It's a critical metric for startups and businesses that helps:
- Monitor cash flow and financial health
- Plan fundraising timing and requirements
- Make strategic decisions about spending and growth
- Determine how long current funds will last
- Adjust business operations based on financial runway
To calculate your company's burn rate:
- Enter your starting cash balance
- Input your ending cash balance
- Specify the time period in months
- Click "Calculate" to see your burn rate metrics
The calculator will provide your monthly and annual burn rates, along with your remaining cash runway based on current spending.
Monthly Burn Rate
The average amount of cash your company consumes each month. This helps in short-term planning and cash flow management.
Annual Burn Rate
Your projected yearly cash consumption. Useful for long-term planning and annual budgeting.
Cash Runway
How long your current cash reserves will last at the current burn rate. Critical for fundraising and strategic planning.
- Monitor burn rate monthly to maintain accurate tracking
- Consider both gross and net burn rates for complete analysis
- Maintain at least 12-18 months of runway when possible
- Adjust spending based on runway and fundraising timeline
- Review burn rate alongside other key financial metrics
What's a healthy burn rate for a startup?
A healthy burn rate depends on your industry, stage, and funding situation. Generally, aim to maintain 12-18 months of runway while achieving key growth metrics.
How often should I calculate burn rate?
Calculate burn rate monthly to maintain accurate financial tracking. More frequent monitoring may be needed during periods of rapid growth or financial stress.
What if my burn rate is too high?
If your burn rate is too high, consider reducing non-essential expenses, optimizing operations, or accelerating revenue generation. Start planning these adjustments when runway drops below 12 months.