Burn Rate & Runway Calculator
Know exactly how long your cash lasts at current spending — with a dynamic forecast that accounts for revenue growth.
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How this calculator works
Burn rate is the rate at which a company spends its cash reserves. Gross burn = total monthly expenses. Net burn = expenses minus revenue. Runway = cash ÷ net burn rate. Investors track this obsessively — you should too. Knowing your runway shapes every major decision: when to fundraise, when to hire, when to cut.
Net burn = Monthly expenses − Monthly revenue | Runway = Cash in bank ÷ Net burn | Dynamic runway accounts for revenue growth reducing net burn over time
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
Raise when runway is 9 months
Start fundraising conversations when you have at least 9 months of runway — fundraising takes 3–6 months.
Revenue growth changes everything
Even modest 10% monthly revenue growth dramatically extends runway — the calculator shows this visually.
Below 3 months = emergency
Under 3 months runway: stop all discretionary spending immediately and enter survival mode.
Frequently Asked Questions
Burn rate is the speed at which a startup spends its cash reserves each month. Gross burn = total monthly expenses. Net burn = monthly expenses minus monthly revenue. Net burn is what truly determines how long you can survive.
Investors and advisors recommend maintaining at least 12–18 months of runway at all times. Start fundraising when you have 9 months left — fundraising takes 3–6 months in India. Less than 3 months runway is a financial emergency.
Fastest levers: (1) Cut discretionary spending immediately, (2) Pause non-essential hires, (3) Renegotiate vendor contracts, (4) Move to remote-first to cut office costs, (5) Focus sales on highest-margin customers to grow revenue faster.
Gross burn is total monthly cash outflow (salaries, rent, software, marketing). Net burn subtracts your monthly revenue. A startup with ₹10L expenses and ₹6L revenue has ₹10L gross burn but only ₹4L net burn.