How to use the burn rate calculator
Enter the cash balance you have now, then enter revenue and expenses for the same period. Burn Rate Calculator converts both amounts to monthly values before calculating gross burn, net burn, and Cash runway. The result includes the conversion factor, assumptions, intermediate monthly amounts, and formulas, followed by options to copy or download the summary.
Enter matching business figures
- Enter Current cash balance, Revenue for this period, and Total expenses for this period. The calculator accepts 0 or higher for each amount.
- Choose Period for revenue & expenses below. Revenue and expenses must cover that same period.
- Choose Custom period length… when needed, then enter Days per period as whole-number digits of at least 1.
- Choose Currency symbol to label the displayed amounts. It does not convert the values.
- Select Calculate burn rate. After the result appears, use Copy result or Download result (.txt). Reset clears the fields and hides the result.
What gross burn rate and net burn rate show
Gross burn rate (per month) equals normalized monthly expenses. Net burn rate (per month) subtracts normalized monthly revenue from that amount. The Result section also shows Cash runway and an assumptions table with the entered amounts, selected period, periods per year, monthly revenue, monthly expenses, and formulas.
Inputs (Monthly)
Current cash balance: $500000
Revenue for this period: $20000
Total expenses for this period: $80000
Output
Gross burn rate (per month): $80,000.00
Net burn rate (per month): $60,000.00
Cash runway: 8.33 monthsHow the period is converted to monthly values
Monthly, Quarterly, Annual, and Weekly use 12, 4, 1, or 52 periods per year. For Custom period length…, the calculator uses 365.25 ÷ days per period. It multiplies each entered amount by periods per year, divides by 12, and then applies Cash runway = Cash balance ÷ Net burn.
Cash runway assumes normalized revenue and expenses stay constant. The calculation leaves out seasonality, one-time charges, financing events, and later changes in spending or revenue. Revenue means cash collected, while expenses mean cash operating expenses, matching the field descriptions.
What custom periods and currency symbols change
Custom Days per period must contain a whole number in plain digits. 45 passes the check, while 01 and 1.0 do not. Empty, non-numeric, non-finite, or negative cash, revenue, and expense values show an error instead of a result. Currency symbol changes the displayed label; it does not apply an exchange rate.
If revenue exceeds expenses, the Net burn rate stat shows the absolute amount followed by (net positive). If net burn is zero or negative, Cash runway reads Not burning cash (revenue covers or exceeds expenses). The downloaded text keeps the signed net burn amount.
Burn rate calculator or another business calculator?
Use Business Calculators to choose among the site's business calculation pages. Cash Runway Calculator is the match for a month-by-month projection. SaaS Metrics Calculator combines MRR, ARR, CAC, LTV, churn, burn, runway, and Rule of 40 for one period of SaaS data.
Use ARR Calculator for recurring revenue by billing period. Burn Rate Calculator calculates cash consumed by expenses after revenue is applied.
Where this comes up
Choose Monthly before entering one month's revenue and expenses. Choose Quarterly or Annual when the figures are reported on that basis. Burn Rate Calculator converts each choice to monthly amounts, so the displayed burn and runway use the same unit.
Choose Custom period length… for a reporting window that does not match the preset choices. A 45-day period uses 365.25 ÷ 45 periods per year. Copy result or Download result (.txt) includes the entered period, normalization factor, formulas, and calculated amounts.
Frequently asked questions
What is the difference between gross burn and net burn?
Gross burn is normalized monthly expenses. Net burn is normalized monthly expenses minus normalized monthly revenue. A negative signed net burn means revenue exceeds expenses.
How do I calculate cash runway from burn rate?
Cash runway is Cash balance divided by positive Net burn rate, in months. When net burn is zero or negative, the result says Not burning cash (revenue covers or exceeds expenses).
Can I use quarterly or custom periods for burn rate?
Choose Quarterly, Annual, Weekly, or Custom period length… and enter revenue and expenses for that same period. Custom Days per period must be a whole number of at least 1.
Does the burn rate calculator connect to my bank?
No. It calculates from the cash balance, revenue, expenses, period, and currency symbol you enter. The calculator code makes no request that sends those values to a server, so the calculation stays in your browser.