Burn Rate Calculator
Calculate Burn Rate metrics for ecommerce, SaaS, marketing, and operations.
This burn rate calculator finds how quickly a company is spending its cash reserves each month - both gross burn (total monthly expenses) and net burn (expenses minus revenue) - a critical metric for startups managing limited funding.
Enter your monthly expenses and revenue, and the calculator returns your gross and net burn rate.
Worked Calculation Examples
| Scenario | Result | Calculation Step |
|---|---|---|
| $80,000/mo expenses, $30,000/mo revenue | Gross burn $80,000 · Net burn $50,000 | Gross burn = $80,000. Net burn = 80,000 − 30,000 = $50,000. |
| $120,000/mo expenses, $100,000/mo revenue | Gross burn $120,000 · Net burn $20,000 | Gross burn = $120,000. Net burn = 120,000 − 100,000 = $20,000 - much lower net burn despite higher gross spend, since revenue nearly covers expenses. |
Gross Burn vs. Net Burn
Gross burn rate is total monthly operating expenses, regardless of revenue. Net burn rate subtracts monthly revenue from expenses, showing the actual rate of cash decline - a company can have high gross burn but low net burn if revenue is growing quickly enough to offset most spending.
Why Burn Rate Drives Runway
Net burn rate is the key input for calculating runway (how many months of cash remain), which is why investors and founders track it closely - a lower net burn extends runway and reduces urgency around raising additional funding, while a rising net burn signals the need to either cut costs or accelerate revenue growth.
How to Use the Burn Rate Calculator
- Open the Burn Rate Calculator and enter the values requested in the input fields.
- Check the units, percentages, dates, or time periods before reading the answer.
- Review the instant result and adjust any value to compare another scenario.
- Use the formula, example, and FAQs below to understand how the burn rate calculator works.
Frequently Asked Questions
What is the difference between gross burn and net burn?
Gross burn is total monthly expenses. Net burn subtracts monthly revenue from expenses, reflecting the actual rate at which cash reserves are declining.
How do you calculate net burn rate?
Subtract monthly revenue from total monthly expenses: net burn = monthly expenses - monthly revenue.
Why does burn rate matter for startups?
Burn rate directly determines how long a company's cash reserves will last (its runway), which is a key factor in fundraising timing and overall financial planning for early-stage companies.
How do I use this burn rate calculator?
Enter the known values, review the units or settings, and the calculator updates the result instantly. The formula and example on this page show how the answer is produced.
What does the Burn Rate Calculator calculate?
Calculate Burn Rate metrics for ecommerce, SaaS, marketing, and operations. It is designed for fast browser-based calculations without sign-up, downloads, or manual spreadsheet setup.
What formula does this burn rate use?
The formula is: Net Burn = Monthly Expenses − Monthly Revenue. 'Burn rate' entered common startup vocabulary during the dot-com boom of the late 1990s, when venture-funded companies commonly spent cash well ahead of revenue to pursue rapid growth - the term's prominence increased further after the 2000-2001 dot-com crash, when many high-burn companies without a clear path to profitability ran out of cash and failed, cementing burn rate as a metric investors now scrutinize closely.
Related Calculators
Subscription MRR Calculator
Calculate Subscription MRR metrics for ecommerce, SaaS, marketing, and operations.
ARR Calculator
Calculate ARR metrics for ecommerce, SaaS, marketing, and operations.
Runway Calculator
Calculate Runway metrics for ecommerce, SaaS, marketing, and operations.
SaaS Magic Number Calculator
Calculate SaaS Magic Number metrics for ecommerce, SaaS, marketing, and operations.
Profit Margin Calculator
Calculate gross profit, margin percentage, and markup.
Markup Calculator
Calculate selling price and markup from product cost.
Last updated: September 27, 2026.