Burn Rate: The One Number That Sets Your Clock
Burn rate tells you how fast cash is disappearing. Founders who know it can plan fundraising and cost cuts before the money runs out.
What is the Burn Rate Calculator?
Enter monthly spending and monthly revenue, and the tool gives gross burn, net burn, and how much of your spending revenue covers. These are estimates from your own figures, not financial advice, and they assume spending and revenue stay steady.
How to use it
- Enter total monthly spending.
- Enter monthly revenue.
- Click Calculate Burn Rate to see gross and net burn.
Worked example
With 10000 spending and 4000 revenue, gross burn is 10000, net burn is 6000 per month, and revenue covers 40% of spending.
What is the difference between gross and net burn?
Gross burn is all spending; net burn subtracts revenue, so it shows the true monthly cash loss.
Frequently asked questions
Is a high burn rate always bad?
Not on its own. It matters against cash reserves and growth: fast spending that buys real revenue is different from spending with no return.
Should I include one-off costs?
Keep them out of the monthly rate and track them separately, or the rate will swing wildly month to month.