Updated in January 2025
Startup Burn Rate Calculator
Current Cash Balance
$1M$0$1.25M$2.5M$3.75M$5M
Monthly Expenses
$100K$0$125K$250K$375K$500K
Monthly Revenue
$50K$0$125K$250K$375K$500K
Monthly Burn Rate
$50K
This is your net monthly burn rate (expenses minus revenue).
Runway
20 months
Time until you run out of cash at current burn rate.
Risk Level: Low
Understanding Your Burn Rate Metrics
Key components that affect your cash runway
- Current Cash Balance
- Your available cash reserves. This is your starting point for calculating runway.
- Monthly Expenses
- Total monthly costs including salaries, rent, services, and other operational expenses.
- Monthly Revenue
- Income generated each month, which reduces your net burn rate and extends runway.
- Burn Rate
- The rate at which you are spending money monthly, calculated as expenses minus revenue.
- Runway Length
- Number of months your cash will last at current burn rate before running out.
- Risk Level
- Assessment of your financial health based on burn rate and runway length.
I love sharing my pitch deck with Papermark, and see how long investors spend on each. These insights make our fundraising process far more effective.
