Burn Rate & Cash Runway Calculator
Burn Rate measures the rate at which a company is spending its cash, while Cash Runway estimates how long the available cash will last based on the current net monthly burn rate. More info →
Input
Enter cash balance, monthly cash inflows,
monthly cash outflows and fundraising lead time
to calculate cash runway.
How This Calculator Works
Burn rate is how fast a company spends its cash. Gross burn is everything going out each month; net burn is what goes out after money coming in. Dividing your cash by the net burn shows how many months you can keep going, and when you need to start raising money.
The Formulas
Gross Burn = Monthly Cash Out · Net Burn = Monthly Cash Out − Monthly Cash In
Cash Runway (months) = Current Cash ÷ Net Burn
Cash Runway (months) = Current Cash ÷ Net Burn
Zero Cash Date = today + whole months of runway · Raise-By Date = Zero Cash Date − fundraise lead time (never earlier than today)
What Each Input Does
- Current Cash Balance
- The cash in the bank today.
- Average Monthly Cash In
- Money received in a typical month, such as revenue.
- Average Monthly Cash Out
- Money spent in a typical month. It must be more than cash in.
- Fundraise Lead Time (Months)
- How long a funding round usually takes. Used to set the raise-by date.
Step by Step
- Gross burn is the monthly cash out; net burn subtracts monthly cash in.
- Cash is divided by net burn to give the runway, to 1 decimal.
- The whole months of runway are added to today's date for the zero cash date.
- The lead time is subtracted to give the date by which to start raising.
Reading the Result
Under 3 months – very short; act now. 3–6 – limited.
6 to under 12 months – moderate; plan ahead.
12 months or more – relatively healthy.
Quick Example
Cash 1,200,000, cash in 50,000 and cash out 150,000 a month,
fundraise lead time 6 months. Gross burn is 150,000 and net burn is 100,000,
so the runway is 12.0 months. Cash runs out in 12 months, so you should start raising within 6 months.
Artoval Financial Labs