Burn Rate Calculator
Gross vs net burn rate with reduction opportunity insights.
Gross burn = total monthly expenses. Net burn = expenses minus revenue. Reducing burn extends runway. This calculator shows both rates and models the impact of cutting discretionary spend (e.g. 10% of expenses) to illustrate reduction opportunities.
Inputs
Results
Gross burn: $15,000/mo
Net burn: $7,000/mo
If cut discretionary: $5,950/mo net
Insights
Formula
Gross burn = Expenses Net burn = Expenses - Revenue
Input Definitions
What does each input mean?
- Monthly expenses
- Total operating costs per month. Gross burn = this amount.
- Monthly revenue
- Monthly income. Net burn = expenses minus revenue.
- Discretionary %
- Share of expenses you could cut (e.g., marketing, travel). Models reduced burn.
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Burn rate is the speed at which a company is spending money — typically expressed as the net cash lost per month. For funded startups, it determines how long the runway lasts. For bootstrapped businesses, it tells you how long you can sustain operations without generating profit. Either way, knowing your burn rate precisely is a prerequisite for every other financial decision. This calculator helps you build it from your actual expense categories.
Use this when you’re preparing for a fundraising conversation and need to know how many months of runway you have, when you’re evaluating whether a cost reduction initiative meaningfully extends your runway, or when you want to model how increased revenue would affect your path to profitability. Burn rate is the most watched number in early-stage companies for good reason.