About the Burn Rate Calculator
What is the Burn Rate Calculator?
Burn rate is how fast a startup is spending its cash. Net burn is the monthly fall in cash; gross burn is total monthly spending before counting revenue.
Enter cash at the start and end of a period and your monthly revenue. The calculator shows both burn figures and how long the remaining cash will last.
How to use the Burn Rate Calculator
- Cash at the Start of the Period (₹) (sample: 3,00,00,000)
- Cash at the End of the Period (₹) (sample: 2,40,00,000)
- Months in the Period (sample: 3)
- Average Monthly Revenue Collected (₹) (sample: 15,00,000)
- Press Calculate Burn Rate (results also refresh as you type). The result card shows the Net Burn per Month, along with Gross burn (total monthly spend), Runway at this net burn and Revenue covers this share of spend.
Formula used
Net burn = (Starting cash − Ending cash) ÷ Months
- Gross burn = net burn + monthly revenue
- Runway = ending cash ÷ net burn
Use a 3-month average to smooth out one-off payments.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Cash at the Start of the Period (₹) | 3,00,00,000 |
| Cash at the End of the Period (₹) | 2,40,00,000 |
| Months in the Period | 3 |
| Average Monthly Revenue Collected (₹) | 15,00,000 |
| Result | Value |
|---|---|
| Net Burn per Month | ₹20,00,000 |
| Gross burn (total monthly spend) | ₹35,00,000 |
| Runway at this net burn | 1 year |
| Revenue covers this share of spend | 42.9% |
Tips for using the Burn Rate Calculator
- Start fundraising with at least 9–12 months of runway left; rounds take 4–6 months.
- Separate one-time costs from recurring burn when planning.