Burn Rate Calculator
Enter initial and final balances for a period and choose the duration to compute burn rate and cash runway.
Burn Rate Calculator
Do you want to know how fast your business is spending cash and how long your funds will last? Our Burn Rate Calculator provides instant insights into your monthly cash burn and your estimated cash runway. By entering your initial balance, final balance, and the duration, you can quickly see how much you’re spending on average per month and how many months of cash you have left. This tool is perfect for startups, small businesses, investors, and financial planners who need to track expenses and plan ahead with confidence.
Understanding Burn Rate and Cash Runway
Burn Rate: Burn rate is the rate at which a company spends its cash reserves over time. It is usually expressed as the amount of money lost per month. Burn rate helps businesses and investors understand how quickly funds are being used.
Formula:
Burn Rate = (Initial Balance − Final Balance) ÷ Duration (in months)
Cash Runway: Cash runway is the estimated time (in months) that a company can continue operating before running out of funds, based on the current burn rate.
Formula:
Cash Runway = Current Cash Balance ÷ Burn Rate per month
👉 Key Insight: Lowering your burn rate increases your runway, giving your business more time to become profitable or raise additional funding.
Formula to Calculate Burn Rate and Cash Runway
Cash Runway = Current Cash Balance ÷ Burn Rate (per month)
Examples of Burn Rate Calculation Using the Calculator
Example 1
Initial Balance = $50,000 | Final Balance = $4,200 | Duration = 61 months
Burn Rate = (50,000 − 4,200) ÷ 61 = $750.82 per month
Cash Runway = 4,200 ÷ 750.82 = 5.59 months
✅ Final Results:
Burn Rate = $750.82 per month
Cash Runway = 5.59 months
Example 2
Initial Balance = $120,000 | Final Balance = $60,000 | Duration = 12 months
Burn Rate = (120,000 − 60,000) ÷ 12 = $5,000 per month
Cash Runway = 60,000 ÷ 5,000 = 12 months
✅ Final Results:
Burn Rate = $5,000 per month
Cash Runway = 12 months
Example 3
Initial Balance = $80,000 | Final Balance = $20,000 | Duration = 10 months
Burn Rate = (80,000 − 20,000) ÷ 10 = $6,000 per month
Cash Runway = 20,000 ÷ 6,000 ≈ 3.33 months
✅ Final Results:
Burn Rate = $6,000 per month
Cash Runway = 3.33 months
Features of Our Burn Rate Calculator
Who Should Use This Calculator?
Why Use an Online Calculator Instead of Manual Calculations?
Manually calculating burn rate and runway can be tedious and error-prone, especially when dealing with large financial figures or long durations. The Burn Rate Calculator simplifies the process by instantly giving you accurate results. This saves time, prevents mistakes, and provides a clear picture of how long your business can operate with its current funds.
Practical Applications
✅ The Burn Rate Calculator is an essential tool for startups, entrepreneurs, and anyone managing business finances. It helps you clearly see how fast you’re spending and how much time you have left before funds run out.
👉 Try our Burn Rate Calculator today on Hive Calculator and take control of your financial planning with accuracy and ease!