Burn Rate Calculator
Calculate your company's monthly and annual burn rate from cash balances. Determine cash runway to understand how long your company can operate before running out of cash. Essential for startups, investors, and financial planning.
Last updated: January 28, 2026
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Cash balance at the start of the period.
Cash balance at the end of the period.
Results
Burn rate (per month)
$50,000 / month
Burn rate = (Initial balance − Final balance) ÷ Duration
Cash burned
$500,000
Burn rate (per year)
$600,000 / year
Cash runway
10.0 months
Cash runway = Final balance ÷ Burn rate per month
How the Burn Rate Calculator Works
Burn rate measures how quickly a company spends its cash reserves. It's calculated by comparing cash balances at two points in time and dividing the difference by the duration between those points.
Burn Rate Formula
Burn rate = (Initial balance − Final balance) ÷ DurationInitial balance: Cash at the start of the period
Final balance: Cash at the end of the period
Duration: Time period (days, weeks, months, or years)
Cash Runway Formula
Cash runway = Final balance ÷ Burn rate per monthCash runway tells you how many months your company can operate before running out of cash, assuming the current burn rate continues.
Example: If you have $500,000 remaining and burn $50,000/month, your runway is 10 months.
Understanding Burn Rate Metrics
The average amount of cash spent per month. This is the most commonly used metric for tracking financial health.
The time remaining before cash runs out. A longer runway provides more time to achieve profitability or secure funding.
Burn Rate Calculator Example
Inputs:
- Initial balance: $1,000,000
- Final balance: $500,000
- Duration: 10 months
Calculations:
- Cash burned: $500,000
- Burn rate: $50,000/month
- Annual burn: $600,000/year
- Cash runway: 10 months
Interpretation: The company is spending $50,000 per month and has 10 months of runway remaining. This provides time to either raise additional funding, reduce expenses, or achieve profitability.
Frequently Asked Questions
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