{
  "slug": "burn-rate",
  "title": "Burn Rate and Runway Calculator",
  "heading": "Burn Rate and Runway Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/burn-rate",
  "summary": "Months of cash left at your current spend.",
  "description": "Net burn is what actually drains the bank account each month. Under six months of runway is the point where fundraising stops being optional and starts being urgent.",
  "formula": "Net burn = Expenses − Revenue. Runway = Cash ÷ Net burn.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=burn-rate",
  "inputs": [
    {
      "id": "cash",
      "label": "Cash in bank",
      "kind": "number",
      "hint": null,
      "default": 420000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "expenses",
      "label": "Monthly expenses",
      "kind": "number",
      "hint": null,
      "default": 78000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "revenue",
      "label": "Monthly revenue",
      "kind": "number",
      "hint": null,
      "default": 31000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "growth",
      "label": "Monthly revenue growth",
      "kind": "number",
      "hint": null,
      "default": 8,
      "unit": "%",
      "min": -50,
      "max": 100
    }
  ],
  "outputs": [
    {
      "id": "runway",
      "label": "Runway at flat revenue (months)",
      "format": "decimal",
      "hint": null,
      "primary": true
    },
    {
      "id": "growthRunway",
      "label": "Runway with growth (months)",
      "format": "number",
      "hint": null,
      "primary": false
    },
    {
      "id": "netBurn",
      "label": "Net monthly burn",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "grossBurn",
      "label": "Gross monthly burn",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "breakEvenRevenue",
      "label": "Revenue needed to break even",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Cash in bank: 420000 $",
      "Monthly expenses: 78000 $",
      "Monthly revenue: 31000 $",
      "Monthly revenue growth: 8 %"
    ],
    "outputs": [
      "Runway at flat revenue (months): 8.9",
      "Runway with growth (months): 12",
      "Net monthly burn: $47,000.00",
      "Gross monthly burn: $78,000.00",
      "Revenue needed to break even: $78,000.00"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter cash in bank ($).",
      "Enter monthly expenses ($).",
      "Enter monthly revenue ($).",
      "Enter monthly revenue growth (%).",
      "Read your runway at flat revenue (months) on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "cash": 250000,
        "expenses": 47000,
        "revenue": 19000,
        "growth": 5
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "cash": 420000,
        "expenses": 78000,
        "revenue": 31000,
        "growth": 8
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "cash": 670000,
        "expenses": 125000,
        "revenue": 50000,
        "growth": 13
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the burn rate and runway calculator work?",
      "a": "Net burn is what actually drains the bank account each month. Under six months of runway is the point where fundraising stops being optional and starts being urgent. The underlying maths is: Net burn = Expenses − Revenue. Runway = Cash ÷ Net burn."
    },
    {
      "q": "What do I need to enter?",
      "a": "4 values: cash in bank, monthly expenses, monthly revenue, and monthly revenue growth. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the runway at flat revenue (months) result mean?",
      "a": "It is returned as a decimal number and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/break-even",
    "https://www.revenuelab.fyi/toolbox/mrr-growth",
    "https://www.revenuelab.fyi/toolbox/saas-payback"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Burn Rate and Runway Calculator (https://www.revenuelab.fyi/toolbox/burn-rate)"
}