Burn Rate Calculator

Measure monthly gross and net cash burn from beginning cash, ending cash, revenue and operating expenses

Period length (months)Beginning cash ($)Ending cash ($)Total revenue during period ($)Total operating expenses during period ($)

Your result will appear here.

About the Burn Rate Calculator

Burn rate measures how quickly a business is consuming cash over time. It is especially important for companies operating at a cash deficit because it connects monthly losses with the amount of funding available.

Gross burn and net burn answer different questions. Gross burn focuses on operating cash outflows, while net burn reflects the decline in cash after inflows are considered.

How to Use the Burn Rate Calculator

Choose gross burn or net burn according to the decision you are making.
Enter cash outflows and inflows over a consistent period.
Calculate monthly or other periodic burn rate.
Review unusual one-time cash movements separately so they do not distort the sustainable operating run rate.

How the Calculation Works

Gross burn can be calculated as total cash operating outflows ÷ number of months. Net burn can be estimated as (starting cash − ending cash) ÷ number of months when cash declined.

A more detailed model sums recurring cash inflows and outflows by month. Burn should be measured from cash movement rather than accounting loss when runway is the objective.

Worked example

Burn Rate Calculator Worked Example

Cash falls from $1.2m to $900k over 3 months

Net cash decline = $300,000. Average net burn = $300,000÷3 = $100,000 per month.

Result guide

Understanding Your Burn Rate Calculator Result

A $100,000 monthly net burn means cash has been decreasing at that average rate. The business can improve runway by reducing burn, increasing cash inflows or raising additional capital.

Before you rely on the answer

Assumptions and Limitations

Cash balances and flows cover the same period.
One-time financing inflows are separated when measuring operating burn.
The average burn is representative enough for planning.

Practical tip

Using This Result in Practice

Calculate both a trailing actual burn rate and a forward budgeted burn rate. A recent cost reduction may not yet be visible in the historical average, while a budget can be overly optimistic if it ignores committed expenses.

Related calculations

Useful Calculations to Continue With

Once periodic burn is known, use the Cash Runway Calculator to estimate how long current cash may last.

If you need to inspect inflows and outflows behind the burn rate, use the Cash Flow Calculator.

Common questions

Burn Rate Calculator FAQ

What is net burn rate?

The average amount by which cash decreases per period after cash inflows are considered.

What is gross burn?

It focuses on cash operating outflows before offsetting revenue or other inflows.

Is accounting loss the same as burn rate?

No. Non-cash expenses and working-capital timing can make accounting loss differ from actual cash burn.