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.
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