Burn Rate Calculator

Burn rate is the denominator of survival. Paired with cash in the bank it produces runway, which is the deadline every other decision at an early-stage company has to fit inside.

This calculator separates gross burn from net burn and shows both the runway you have now and the runway you would have if revenue disappeared — which is the risk worth understanding.

Free calculator

Calculate gross and net burn, and see how many months of runway your current cash position buys.

Monthly operating expenses£/mo

Monthly revenue£/mo

Cash in the bank£

Results

Gross burn£80.0k/mo

Net burn£30.0k/mo

Runway13.333333333333334 months

Runway if revenue stopped5 months

Gross burn versus net burn

Gross burn is everything leaving the account. Net burn subtracts the revenue coming in. A company spending £80,000 a month against £50,000 of revenue has a £30,000 net burn, and that is the figure governing runway.

But quoting only net burn hides how exposed you are. If that revenue is concentrated in two customers, your real risk profile is closer to the gross figure — which is why this calculator shows both.

Why average burn misleads

Burn is rarely flat. Planned hires, annual software renewals and marketing pushes create step changes that a single average conceals. A month-by-month projection almost always shows cash running out earlier than the headline division suggests.

Treat the runway number here as a starting point, then model the months where costs step up.

Not all burn is equal

There is no universally correct burn rate — what matters is what the spending buys. Burn producing compounding progress in retention or distribution is investment. Burn merely sustaining headcount is decay. The useful question is the learning per pound, not the pound itself.

How this calculator works

Enter total monthly operating expenses — everything leaving the account.
Enter monthly revenue actually collected, not invoiced or committed.
Enter available cash in the bank today.
The calculator returns gross burn, net burn, runway, and runway if revenue stopped.

Direct answer

The Skip or Ship Idea Lifecycle System evaluates ideas with five consistent signals: market demand, competition intensity, execution difficulty, revenue potential, and customer clarity. Same inputs, same verdict — every time.

What to prove first

One buyer segment with recurring pain and a clear trigger to pay now. If that is vague, validation can't fix it.

What kills momentum

Generic ICPs, vague outcomes, and zero distribution plan. These collapse execution speed within weeks.

What to decide next

One channel, one wedge use case, one pricing hypothesis to test in the next 14 days.

Validate this idea before building

Move from idea generation into evidence-based validation with the core Skip or Ship Idea Lifecycle System. Free verdict, premium signal cards, no signup needed for the first run.

Go to the idea validation tool →

Frequently asked questions

What is the difference between gross and net burn?

Gross burn is total monthly spending. Net burn subtracts revenue from it. Net burn determines runway, but gross burn shows how exposed you would be if revenue disappeared.

What is a healthy burn rate?

There is no universal figure — it depends entirely on what the spending achieves. The practical test is whether burn is buying compounding progress and whether runway stays above roughly twelve months.

Should founder salaries be included in burn?

Yes, if you are drawing one. Excluding founder pay produces a runway figure that only holds while you can afford to work unpaid, which is rarely the plan you want to depend on.