How it is calculated
Cash spent over the period รท number of months, or cash outflow minus cash inflow for net burn.
Finance
Burn Rate Calculator
Calculate average monthly net cash burn. Results are estimates and are calculated locally on your device.
Use this result as a planning estimate, not financial, tax, legal, or professional advice.
How to use this tool
Understand the result before you act on it
Calculate the pace at which a business is consuming cash and use it to monitor runway.
Worked example
If cash falls by $90,000 over three months, average net burn is $30,000 per month.
What to do with the number
Use the result as a baseline, test different assumptions, and compare scenarios before changing budgets, staffing, pricing, or processes.
Common questions
Burn Rate Calculator FAQ
What is burn rate?
Use the calculator with your own business inputs and compare the result over a consistent period. The output is a planning estimate, so validate important decisions against your accounting or operating data.
What is the difference between gross and net burn?
Use definitions that stay consistent from one measurement period to the next. Consistency makes the result more useful for comparisons and trend tracking.
How often should burn rate be updated?
No. The calculator provides an estimate from the values you enter. Real outcomes depend on pricing, operations, customer behavior, data quality, and other business conditions.