SaaS Burn Rate Calculator

See exactly how fast your startup is spending cash — and how many months you have before the bank account hits zero.

Cash on hand ($)

Monthly revenue ($)

Monthly expenses ($)

Gross burn vs net burn

Burn rate measures how fast a company spends its cash. Gross burn is the total you spend each month — payroll, hosting, tools, rent, contractors — regardless of what comes in. Net burn subtracts monthly revenue from those expenses, so it shows the actual cash leaving your bank each month. A SaaS spending $55,000 and collecting $30,000 in MRR has a $55,000 gross burn but only a $25,000 net burn. Founders and investors watch net burn, because that is the number draining the balance. Everything runs in your browser; your figures are never uploaded anywhere.

How runway is calculated

Runway is simply cash on hand divided by net burn: $250,000 in the bank at a $25,000 net burn gives 10 months before the account hits zero. The calculator also projects the calendar month that happens, and shows expense coverage — the share of monthly costs your revenue already pays for. If revenue meets or exceeds expenses, net burn is zero or negative, runway is effectively infinite, and you are what investors call "default alive."

How to use it

Enter your current cash on hand — bank balance plus anything liquid you would actually spend.
Enter average monthly revenue (use a 3-month average if it is lumpy).
Enter total monthly expenses: salaries, contractors, rent, software & marketing.
Read gross burn, net burn, runway in months, and the projected cash-out date — results update as you type.

These figures are simplified estimates for planning only — not financial, tax, or legal advice.

FAQ

What counts as monthly expenses?: Every recurring cash cost: salaries and payroll taxes, contractors, rent, software, hosting, and marketing spend. Use what actually leaves the bank — divide annual bills by 12 rather than booking them in one month.
How much runway is healthy?: Most investors want 18–24 months after a raise. Under 6 months means cutting costs or fundraising immediately, since a round typically takes 3–6 months to close.
Why is my runway showing as infinite?: Your revenue equals or exceeds expenses, so there is no net burn — you are cash-flow positive and adding to your cash, not spending it down.
Should I use MRR or cash collected for revenue?: Use cash actually collected each month. Annual prepays inflate a single month; average the last three months for a truer picture of burn.