Burn Rate Calculator
Calculate your gross and net monthly burn rate from cash spent and revenue received to track how fast your business is spending cash.
Your results
Calculation breakdown
- Gross burn
- Total monthly cash expenses
- Net burn
- Gross burn − Monthly revenue
Worked example
A business spending $35,000 a month with $25,000 in monthly revenue has a net burn of $10,000 a month.
Assumptions
- Use cash figures, not accrual accounting entries, for an accurate burn rate.
- A negative net burn means the business is cash-flow positive for the month.
- Feed the net burn figure into the cash runway calculator for months remaining.
How this calculator works
This calculator shows gross burn (total monthly cash outflow) and net burn (outflow minus revenue received) so you can track how quickly cash reserves are being used.
Frequently asked questions
What is the difference between gross and net burn?
Gross burn is total cash spent each month; net burn subtracts monthly revenue, showing the true cash shortfall or surplus.
Why does net burn matter more than gross burn?
Net burn reflects the actual cash draining from the business after income, which directly determines your runway.
Can burn rate be negative?
A negative net burn means the business is generating more cash than it spends, which is a positive sign.
Results are estimates only and are not financial, tax, legal or credit advice.