Burn Rate Calculator
Find out how fast your business is spending cash — and how many months of runway you have left.
What Is Burn Rate?
Burn rate is the rate at which a business spends its cash reserves. It is calculated as monthly expenses minus monthly revenue. A positive burn rate means you are spending more than you earn — your cash position decreases each month. A negative burn rate means you are cash flow positive.
How to Calculate Burn Rate
Gross burn rate = total monthly expenses. Net burn rate = monthly expenses minus monthly revenue. Most businesses track net burn rate because it accounts for income.
What Is a Good Burn Rate?
For established small businesses, you should aim to be cash flow positive (negative burn rate). If you are burning cash, aim for at least 6–12 months of runway. Less than 3 months is a financial emergency requiring immediate action.