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Startup Runway & Burn Rate Calculator
Cash Accounts
$
$
$
Operational Lifeline
Net Monthly Cash Burn Rate
$5,000/mo
Estimated Cash Runway
10.0 Months
Managing Startup Runway & Cash Burn Rates
Calculating your cash runway is the most important survival measure for any startup. It indicates the exact number of months your company can survive before it runs out of cash reserves at current spending levels.
Net Burn Rate vs. Gross Burn Rate
It is important to separate these two terms:
- Gross Burn: The total amount of cash spent each month (salaries, office lease, tooling).
- Net Burn: The actual cash loss per month. It is calculated by taking your monthly gross expenses and subtracting your monthly recurring revenues.
How to Stretch Your Runway
If your runway is less than 6 months, you are in a warning zone. To extend it, focus on lowering non-essential operational overheads, increasing high-margin revenues, or preparing your next investment funding round well in advance.