Burn Rate Calculator

Work out how much cash your startup really burns each month — gross and net.

Your result

Estimates for educational purposes, not financial or legal advice.

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How it works

Gross burn is everything that leaves the bank in a month. Net burn subtracts the cash that comes in. Investors care about net burn because it decides runway; they look at gross burn to understand your cost base.

Formula

Gross burn = total monthly cash out
Net burn = Gross burn − monthly cash in
Annual net burn = Net burn × 12

Frequently asked questions

What is a good burn rate for a seed-stage startup?

There is no universal number. A useful test is burn multiple: net burn divided by net new ARR. Under 2 is good, above 3 means growth is expensive.

Should I calculate burn from my P&L or bank account?

Use the bank account. Burn is about cash, and accruals, deferred revenue or unpaid invoices can make the P&L look very different from reality.

How do I reduce burn without killing growth?

Cut spending that does not move your next-round milestones. Tools, contractors and experiments that cannot be tied to a milestone usually go first.

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