What is the difference between gross and net burn rate?

Gross burn is total monthly spending. Net burn is spending minus revenue. Net burn shows the real rate at which you're consuming cash reserves.

What burn rate is too high?

There's no universal answer, but if your runway falls below 6 months without a clear path to profitability or funding, your burn is likely unsustainable.

Burn Rate Calculator — Monthly Cash Burn for Startups

Calculate gross and net burn rate for your startup. Understand how fast you're spending cash and when you'll need your next funding round.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate gross and net burn rate for your startup. Understand how fast you're spending cash and when you'll need your next funding round. Use the burn rate calculator result to inform your calculation.

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Burn Rate Calculator — Monthly Cash Burn for Startups

How to Use

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Frequently Asked Questions

What is the difference between gross and net burn rate?

What burn rate is too high?