Burn Rate Calculator
Gross burn and net burn are different.
Net monthly burn
$16,000
8.3 months of runway
Gross burn is what you spend; net burn is what you lose. Measuring runway on gross burn is unnecessarily pessimistic, and measuring it on net burn in a business with lumpy revenue is unnecessarily optimistic — watch both.
How the Burn Rate Calculator works
Gross burn is what you spend; net burn is what you lose. Measuring runway on gross burn is unnecessarily pessimistic, and measuring it on net burn in a business with lumpy revenue is unnecessarily optimistic. Watch both.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the difference between gross and net burn?
Gross burn is total monthly spend. Net burn is spend less revenue — the actual monthly reduction in cash.
How do I calculate burn rate?
Cash at the start less cash now, divided by the months between them. Deriving it from actual cash movement catches things a budget misses.
Why does lumpy revenue matter?
Because net burn averaged over a good quarter understates the burn in a bad one. Businesses with seasonal or contract revenue should stress-test against their worst months.
What is a healthy burn?
Whatever your runway and growth justify. Burn is only a problem relative to the cash available and the progress it buys.