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STARTUP · CASH PLANNING

Monthly Burn Rate Calculator

Get a clear picture of where cash goes — net burn rate from category buckets with runway and annual projection.

Try a preset

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Result

Status: in range.NET BURN
$23,000.00$/mo
GROSS BURN
$43,000.00
Status: in range.RUNWAY
21.74 mo
ANNUAL NET BURN
$276,000.00

Spend by category

Payroll
30,000
Facilities
5,000
Technology
3,000
Marketing
5,000
Methodology → Formula, assumptions, sources, and known limits.

How to use it

  1. Add every recurring expense as a line item with a name, a category, and a monthly amount, then enter your cash on hand and any monthly revenue. Categorise honestly (payroll, software, rent, marketing, contractors) because the category breakdown is what turns a single burn number into an actionable one. Include everything that leaves the account each month, since the most common mistake is forgetting annualised contracts, payroll taxes, or the tools nobody remembers subscribing to.
  2. Read gross burn (total expenses), net burn (gross minus revenue), runway in months, annualised burn, and the per-category breakdown with each category's share of spend. Gross burn tells you the size of the machine; net burn tells you how fast cash actually drains. If revenue covers expenses, runway shows as effectively unlimited, which is the signal that you have crossed into self-sustaining territory.
  3. Use the category breakdown to find where the money actually goes rather than where you assume it goes. If payroll is 70% of burn, no amount of cancelling small software subscriptions will move runway meaningfully, and the real lever is headcount or revenue. A category that has crept above its expected share is usually the first place to look before a broad cost-cutting exercise.
  4. Translate net burn into decisions by testing what a 10% revenue increase does to runway versus a 10% expense cut. Often the expense cut is faster and more certain than the revenue bet, but this tool lets you compare them in months rather than arguing about them in the abstract. Watch the runway figure cross below six months, the point where most teams should already be raising or restructuring.
  5. Re-run monthly from your actual close data and after any hire, contract, or pricing change. Track net burn and runway as a trend, because a single bad month can pull the cash-out date forward sharply. Pair this with the burn multiple tool to check whether the spend is buying efficient growth and the startup runway tool to model growth and burn-cut scenarios together.
Questions people usually ask
What decision is Monthly Burn Rate Calculator designed for?

Monthly Burn Rate Calculator helps teams calculate monthly burn rate from line items with category breakdown and runway estimate. before committing budget, pricing, or operating changes.

How can I get decision-grade output quality?

Use validated baseline numbers, run downside and upside scenarios, and align assumptions with your real cadence and constraints.

Is this legal, tax, or accounting advice?

No. Outputs are business planning estimates and should be reviewed with qualified professionals when required.

Is this free and private?

Yes. Tools run client-side in your browser with no signup.

Related Resources

Learn the decision before you act

Every link here is tied directly to Monthly Burn Rate Calculator. Use the explanation, formula, examples, and benchmarks to pressure-test the calculator output from first principles.

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Long-form context behind the calculator output.

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