Business
Cash runway
Estimate how long available cash can support a constant monthly net burn.
Calculators / Business / Business burn rate
Business burn rate calculator
Calculate gross burn, net burn, and runway from cash movement.
On this page
Observed monthly cash decrease20,000
Operating net burn20,000
Runway from ending cash19months
Calculator controls
How to calculate
Calculate gross burn, net burn, and runway from cash movement.
observed burn = (starting cash − ending cash) ÷ months; operating burn = costs − revenue
Worked example
Starting cash balance: 500000; Ending cash balance: 380000; Measurement period (months): 6; Average monthly cash revenue: 50000; Average monthly cash costs: 70000.
Observed monthly cash decrease: 20,000 ; Operating net burn: 20,000 ; Runway from ending cash: 19 months.
Assumptions and limits
Financing flows, capital purchases, delayed collections, deposits, taxes, and exceptional transactions should be separated before interpreting burn.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
Calculate gross burn, net burn, and runway from cash movement. The calculation keeps the assumptions visible instead of relying on hidden market data.
When this tool is useful
Use this calculator to compare a financial or operating scenario before confirming the figures with the relevant provider or records.
Understanding your inputs
| Input | What to enter |
|---|---|
| Starting cash balance | Enter a number of at least 0 and no more than 1000000000000. |
| Ending cash balance | Enter a number of at least 0 and no more than 1000000000000. |
| Measurement period (months) | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Average monthly cash revenue | Enter a number of at least 0 and no more than 1000000000000. |
| Average monthly cash costs | Enter a number of at least 0 and no more than 1000000000000. |
Frequently asked questions
What should I verify before relying on this result?
Financing flows, capital purchases, delayed collections, deposits, taxes, and exceptional transactions should be separated before interpreting burn.
Does this calculator retrieve live financial data?
No. It uses only the values entered on this page, so rates and balances remain transparent and editable.