Burn Rate Calculator 2026
Enter monthly expenses and cash on hand to see gross burn, net burn, and exactly how many months of runway you have left.
Quick Answer
Net burn rate = monthly expenses − monthly revenue. A startup with $500,000 cash, $60,000 expenses, and $15,000 revenue burns $45,000/month — giving 11.1 months of runway. Investors generally require 18–24 months of runway post-funding. Gross burn measures total cash out before revenue offsets.
Last updated: September 2026 · 2026 IRS & state tax rates
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Runway, burn rate, and zero-cash date will appear here
How to Calculate Burn Rate
Gross burn rate is total monthly cash outflow. Net burn rate subtracts monthly revenue. Runway = cash on hand ÷ net burn rate.
Example: $500,000 cash ÷ $50,000 net burn = 10 months runway. With $10,000/month revenue, net burn drops to $40,000 and runway extends to 12.5 months.
Runway Benchmarks
- 24+ months: Strong — fundraise from a position of strength
- 18–24 months: Standard — start fundraising if you need a Series A
- 12–18 months: Watch closely — cut non-essentials if growth isn't accelerating
- Under 12 months: Danger zone — begin cost cutting or fundraising immediately
- Under 6 months: Crisis — cut aggressively and explore bridge financing now
- Payroll Taxes Guide
- Overtime Rules
- Tax Withholding Guide