📊 Business
Burn Rate & Runway Calculator
For startups and small businesses, cash runway is the ultimate deadline. It tells you how many months until you run out of money. Knowing your burn rate and runway is critical for fundraising timing.
IM MET
How to Use This Tool
- Enter your current cash balance.
- Enter monthly revenue.
- Enter monthly expenses.
- Click Calculate to see burn rate, runway, and status.
The Formula
Gross Burn = Monthly Expenses. Net Burn = Monthly Expenses - Revenue. Runway = Cash Balance / Net Burn.
Why It Matters
Your startup has $500,000 in the bank, $30,000/month in revenue, and $80,000/month in expenses. Your gross burn is $80,000/month, but your net burn is only $50,000 (after revenue). Your runway is 10 months — you need to raise your next round before month 8 to give yourself buffer for negotiations.
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