The method
How it is worked out
Net burn = E − I
- E
- Monthly spending
- I
- Monthly income
Burn Rate Calculator
Calculate monthly gross spending, net cash burn and a simple runway estimate from cash, monthly expenses and monthly income. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Spending changesHiring, launches and one-off bills make burn jumpy.
- Income timingLate-paying customers can make cash tighter than this shows.
- FundingNew investment or loans aren't included.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Burn Rate Calculator
Work out how much cash a startup spends each month and how much remains after its monthly income. This gives founders a quick view of gross spending, net burn and the urgency of raising money or reducing costs.
How it works and an example to tryShow less
How to use the result
Gross burn is the monthly expenses entered; net burn is those expenses less monthly income. The tool uses opening cash and net burn to illustrate how long that cash could last if both rates stay unchanged. It does not model an opening-to-closing cash reconciliation, delayed customer receipts, planned hiring or future fundraising.
Example to try
Imagine two founders with 200,000 in cash. Enter monthly spending and monthly income, then see how a new hire changes net burn and cash runway. When income covers spending, the tool correctly treats net burn as zero or below rather than predicting a cash-out date.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Founders running a seed-stage company, finance leads reporting to a board, and anyone deciding whether the next hire is affordable before the next raise.
Mistakes worth avoiding
- Counting expected revenue as income before customers actually pay.
- Ignoring annual bills, such as insurance or software renewals, that land in one month.
- Treating the current burn as fixed when a hiring plan is already agreed.
Questions
What does the Burn Rate Calculator do?
Calculate monthly gross spending, net cash burn and a simple runway estimate from cash, monthly expenses and monthly income.
How should I use the result?
Gross burn is the monthly expenses entered; net burn is those expenses less monthly income. The tool uses opening cash and net burn to illustrate how long that cash could last if both rates stay unchanged. It does not model an opening-to-closing cash reconciliation, delayed customer receipts, planned hiring or future fundraising.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a burn rate calculator?
Counting expected revenue as income before customers actually pay. Ignoring annual bills, such as insurance or software renewals, that land in one month. Treating the current burn as fixed when a hiring plan is already agreed.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.