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Cash Burn Rate Calculator
Work out your gross and net monthly burn, then see how many months of runway your cash balance gives you. Enter your numbers and press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
Cash balance until it runs out
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How the burn rate calculator works
The calculator starts with your gross burn, which is simply your total monthly expenses. It then subtracts your monthly revenue to find net burn, the amount your cash balance falls by each month. Dividing your cash on hand by net burn gives your runway in months.
The chart traces your cash balance month by month until it reaches zero, so you can see the exact point at which you would need new revenue or funding. If your revenue already covers expenses, you are cash flow positive and the runway is effectively unlimited.
A quick example
Suppose you hold $500,000, spend $60,000 a month and earn $20,000 a month. Your gross burn is $60,000 and your net burn is $40,000. That gives roughly 12.5 months of runway, or about 1 year and 0 months before the cash is gone.
Things to keep in mind
This is a steady-state estimate. Real burn changes as you hire, grow revenue or face one-off costs, so revisit it often. For broader small-business financial guidance, the U.S. Small Business Administration is a useful resource. You can also compare scenarios with our other free calculators.
Frequently asked questions
What is burn rate?
Burn rate is how much cash a company spends each month to operate. Gross burn is your total monthly expenses. Net burn subtracts any revenue you bring in, so it reflects how fast your cash balance is actually shrinking.
How is runway calculated?
Runway is your current cash on hand divided by your net monthly burn. If you have $500,000 in the bank and burn $40,000 net per month, you have about 12.5 months of runway before the cash runs out, assuming nothing changes.
What is a healthy burn rate?
There is no single number. A healthy burn rate keeps enough runway to reach your next milestone or funding round, usually 12 to 18 months. The right level depends on your stage, growth plans and how predictable your revenue is.
How can I extend my runway?
You can extend runway by growing revenue, cutting non-essential costs, or raising more capital. Even small recurring savings add months because runway scales directly with net burn. Revenue growth helps most because it reduces net burn on every future month.
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