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2xKit

Burn Rate & Cash Runway Calculator

Calculate your startup's monthly burn rate and cash runway.

Formula v1.0.0GlobalMethodologyReport an issueburn-rate-v1
How this is calculated
Net burn rate = monthly expenses − monthly revenue. Runway = cash balance ÷ net burn rate

Assumptions used in this calculation

  • Constant monthly burn: Assumes revenue and expenses stay constant each month going forward; it doesn't account for expected revenue growth, seasonality, or planned changes in spending.

About this calculator

For a startup spending more than it earns, the single most urgent number is how many months of cash remain before the bank balance hits zero — and that number changes every time expenses or revenue shift, making it easy to lose track of exactly how much runway is actually left. This calculator takes current cash balance, monthly revenue and monthly expenses, computes net burn rate as expenses minus revenue, then divides cash balance by that net burn rate to find the runway in months. Rather than updating a spreadsheet formula every time a new expense or revenue figure comes in, this gives founders an instant, accurate answer to how long the company can keep operating at its current spending pace, which is essential for timing fundraising, deciding when to cut costs, and communicating runway clearly to investors or the team.

Worked example

₹10,00,000 cash, ₹2,00,000 revenue, ₹3,50,000 expenses

Result: Burn rate = ₹1,50,000/mo, runway ≈ 6.7 months

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