Burn Rate: $2M Cash, $250K Expenses, $100K Revenue
A Series A startup with $2M in cash, $250K monthly expenses, and $100K in revenue burns $150K net per month with about 13 months of runway.
How to use this tool
- Enter your total cash on hand right now.
- Enter your total monthly operating expenses (gross burn).
- Enter your monthly revenue.
- Read your net burn, gross burn, runway in months, and status.
13 months of runway post-Series A is considered comfortable if the company is growing quickly — investors typically want to see the next round closed before runway drops below 6 months.
Frequently asked questions
- What is the difference between gross and net burn?
- Gross burn is all the cash you spend in a month. Net burn subtracts revenue, so it is the cash you actually consume. Runway is driven by net burn, because revenue offsets some of your spending.
- How much runway should I keep?
- A common rule of thumb is 12–18 months. Because raising money or cutting costs takes time, many founders start acting when runway drops below about six months rather than waiting until cash is nearly gone.
- What happens if revenue exceeds expenses?
- Then net burn is zero or negative — you are cash-flow positive and adding cash each month, so runway is effectively infinite at the current rates. This calculator reports that status instead of a finite runway.