How long will your money last? Calculate your startup's monthly burn rate, cash runway, and project when you will break even or run out of cash.
Warning
3 to 6 months of runway. Start planning your next funding round or cost reductions.
Gross Burn
£8,500
per month
Net Burn
£8,500
per month
Cash Runway
5.9 months
at current burn
Daily Burn
£283
per day
With 10% monthly revenue growth, your runway extends to approximately 6 months.
Based on 10% monthly revenue growth
| Month | Revenue | Expenses | Net Burn | Cash Left |
|---|---|---|---|---|
| Month 1 | £0 | £8,500 | -£8,500 | £41,500 |
| Month 2 | £0 | £8,500 | -£8,500 | £33,000 |
| Month 3 | £0 | £8,500 | -£8,500 | £24,500 |
| Month 4 | £0 | £8,500 | -£8,500 | £16,000 |
| Month 5 | £0 | £8,500 | -£8,500 | £7,500 |
| Month 6 | £0 | £8,500 | -£8,500 | -£1,000 |
| Month 7 | £0 | £8,500 | -£8,500 | -£9,500 |
| Month 8 | £0 | £8,500 | -£8,500 | -£18,000 |
| Month 9 | £0 | £8,500 | -£8,500 | -£26,500 |
| Month 10 | £0 | £8,500 | -£8,500 | -£35,000 |
| Month 11 | £0 | £8,500 | -£8,500 | -£43,500 |
| Month 12 | £0 | £8,500 | -£8,500 | -£52,000 |
Burn rate is one of the most critical metrics for any startup or small business. It tells you how quickly you are spending your cash reserves and, more importantly, how long you have before the money runs out. Understanding your burn rate is essential for making informed decisions about hiring, spending, and fundraising.
The distinction between gross and net burn rate is important. Gross burn rate is simply your total monthly expenditure. Net burn rate subtracts your revenue, giving you the actual rate at which your cash balance is declining. As your business grows and revenue increases, your net burn rate should decrease, eventually reaching zero (break-even) and then going negative (profitability).
Most investors expect startups to have at least 12 to 18 months of runway when they invest. This gives the company enough time to hit milestones and raise the next round of funding. If your runway drops below 6 months, it is generally time to either raise more capital or significantly reduce your spending. Below 3 months is considered an emergency.
The revenue growth projection in this calculator helps you model different scenarios. A 10% monthly growth rate is ambitious but achievable for many early-stage companies. You can adjust this to see how different growth rates affect your runway and break-even point. For more detailed financial planning, try our Profit Margin Calculator or VAT Calculator.
Burn rate is the speed at which your company is spending money. It's one of the most critical metrics for any startup, as it directly determines your cash runway—the amount of time you have before you run out of money. There are two types: Gross Burn is your total monthly expenses, while Net Burn is your total expenses minus your revenue. If you're not yet profitable, you have a net burn.
Monitoring your burn rate helps you make crucial decisions about hiring, spending, and fundraising. A high burn rate might accelerate growth, but it also increases risk. This Calculator Site tool is designed to give you a clear, real-time view of your financial health, helping you navigate the challenges of building a sustainable business. You can also check our VAT Calculator to manage your tax obligations.
Don't Confuse Revenue with Profit
A common startup pitfall is focusing only on revenue growth while ignoring cash burn. Even with millions in revenue, a company can fail if its expenses are too high. Your runway is determined by your net burn, not your top-line revenue. Always know how much cash you are truly spending each month after accounting for all income. This is key to knowing when you'll need to raise more funding or achieve profitability.
Beyond burn rate, several numbers give a snapshot of a startup's health. Investors look at these to gauge viability and growth potential. Understanding them is crucial for any founder.
12-18
Months of ideal runway
< 6 Months
Fundraising "danger zone"
~90%
Startups that fail from cash issues
A healthy runway gives you time to execute your strategy and hit milestones before needing more capital. If your runway drops below 6 months, fundraising should become your top priority. You can model your personal finances with our Take-Home Pay Calculator to understand your own runway.
How to use this Calculator Site tool
Start by entering your current cash balance, monthly revenue, and a list of all your monthly expenses. The calculator will instantly show your gross and net burn rates, and your current cash runway. Use the "Monthly Revenue Growth" input to project how your runway changes as you scale. This helps you see when you might reach break-even or when you'll need to secure new funding.
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