What inputs does the Monthly Burn Rate Calculator need?

It takes 3 inputs: items, cash_on_hand, monthly_revenue (default 0). Outputs returned: grossBurn, netBurn, runwayMonths, annualBurn, byCategory / itemCount.

Can I verify the Monthly Burn Rate Calculator with a worked example?

Yes. With items = [{SaaS, software, 400}, {Payroll, payroll, 8000}, {Rent, office, 1200}], cash_on_hand = $50,000, monthly_revenue = $2,000. the tool returns grossBurn = 9,600, netBurn = 7,600, runwayMonths ≈ 6.58, annualBurn = 91,200.

Does the Monthly Burn Rate Calculator bundle any external benchmark data?

No. It runs standard arithmetic on the values you enter; no external benchmark dataset is bundled. Industry references, where relevant, are cited on the adjacent tools' methodology pages.

What can the Monthly Burn Rate Calculator not tell me?

Known limitations: Gross-vs-net burn is sensitive to how the user categorises refunds, deferred revenue, and founder salary. The tool takes inputs at face value. No scenario layer: to compare best/base/worst, run the tool multiple times and compare.

Methodology: Monthly Burn Rate Calculator

1. Scope

Totals monthly outflows into gross and net burn, then divides cash on hand by net burn to report runway. It surfaces a category breakdown but does not forecast growth or model dilution.

2. Inputs and outputs

Inputs

items array

Each item: name, category, amount (monthly).
cash_on_hand number (currency)
monthly_revenue number (currency) default: 0

Optional — subtracted to compute net burn.

Outputs

grossBurn

Sum of all monthly outflows.
netBurn

grossBurn − monthly_revenue (can be negative).
runwayMonths

cash_on_hand / netBurn, or Infinity when netBurn ≤ 0.
annualBurn

netBurn × 12.
byCategory / itemCount

Rollup by category (amount + percent) and the item count.

Engine source: src/lib/monthly-burn-rate-calculator/engine.ts

3. Formula / scoring logic

gross_burn   = sum(items.amount)
net_burn     = gross_burn - monthly_revenue
runway_months = net_burn <= 0 ? Infinity : cash_on_hand / net_burn
annual_burn  = net_burn * 12

4. Assumptions

Items are steady-state monthly amounts. Annual subscriptions should be divided by 12 before entry.
One-time items (legal filings, equipment) belong in the Startup Cost Estimator, not this tool.
Payroll is entered inclusive of employer taxes and benefits, or users should run the Employee Cost Calculator first.

5. Data sources

This tool relies on user inputs and standard arithmetic; no external benchmark data is bundled. When a question depends on an industry reference (for example, typical churn rates or hourly-wage medians), the linked adjacent tools cite their primary sources on their own methodology pages.

6. Known limitations

Gross-vs-net burn is sensitive to how the user categorises refunds, deferred revenue, and founder salary. The tool takes inputs at face value.
No scenario layer: to compare best/base/worst, run the tool multiple times and compare.

7. Reproducibility

Input
items = [{SaaS, software, 400}, {Payroll, payroll, 8000}, {Rent, office, 1200}], cash_on_hand = $50,000, monthly_revenue = $2,000.

Expected output
grossBurn = 9,600, netBurn = 7,600, runwayMonths ≈ 6.58, annualBurn = 91,200.

8. Change log

2026-04-24 methodology page first published.

Worked example

Run live against the same engine this site ships (/engines/monthly-burn-rate-calculator.js). The inputs and outputs below are recomputed on every build and independently re-verified in CI — they are never hand-authored.

Input

tool: monthly_burn_rate
cash_on_hand: 200000
monthly_revenue: 8500
items[0].name: Salaries
items[0].category: payroll
items[0].amount: 15000
items[1].name: Hosting
items[1].category: infra
items[1].amount: 1200

Output

grossBurn: 16200
netBurn: 7700
runwayMonths: 25.97
byCategory.payroll.amount: 15000
byCategory.payroll.percent: 92.59
byCategory.infra.amount: 1200
byCategory.infra.percent: 7.41
itemCount: 2
annualBurn: 92400

Frequently asked questions

What does the Monthly Burn Rate Calculator calculate?: Totals monthly outflows into gross and net burn, then divides cash on hand by net burn to report runway. It surfaces a category breakdown but does not forecast growth or model dilution.
What inputs does the Monthly Burn Rate Calculator need?: It takes 3 inputs: items, cash_on_hand, monthly_revenue (default 0). Outputs returned: grossBurn, netBurn, runwayMonths, annualBurn, byCategory / itemCount.
What formula does the Monthly Burn Rate Calculator use?: The exact computation is: gross_burn = sum(items.amount); net_burn = gross_burn - monthly_revenue; runway_months = net_burn <= 0 ? Infinity : cash_on_hand / net_burn; annual_burn = net_burn * 12
Can I verify the Monthly Burn Rate Calculator with a worked example?: Yes. With items = [{SaaS, software, 400}, {Payroll, payroll, 8000}, {Rent, office, 1200}], cash_on_hand = $50,000, monthly_revenue = $2,000. the tool returns grossBurn = 9,600, netBurn = 7,600, runwayMonths ≈ 6.58, annualBurn = 91,200.
Does the Monthly Burn Rate Calculator bundle any external benchmark data?: No. It runs standard arithmetic on the values you enter; no external benchmark dataset is bundled. Industry references, where relevant, are cited on the adjacent tools' methodology pages.
What can the Monthly Burn Rate Calculator not tell me?: Known limitations: Gross-vs-net burn is sensitive to how the user categorises refunds, deferred revenue, and founder salary. The tool takes inputs at face value. No scenario layer: to compare best/base/worst, run the tool multiple times and compare.