Free Startup Burn Rate Calculator

Quick answer

Gross burn is total monthly cash operating outflow. Net burn subtracts monthly cash inflow from gross burn and is the figure normally used for runway.

Formula

Net burn = monthly cash expenses − monthly cash revenue

Example

20,000 monthly expenses and $70,000 monthly cash revenue produces $50,000 monthly net burn.

How to interpret it

Use cash movement rather than accrual accounting revenue when the question is how long the bank balance will last.

Methodology, assumptions and limitations