Burn Rate & Runway Simulator
Model gross burn, net burn, and funding runway with dynamic monthly projections. Include planned funding rounds and revenue growth.
Quick Formulas: Gross Burn = Total Monthly Expenses. Net Burn = Expenses − Revenue. Static Runway = Cash ÷ Net Burn. A 5% monthly revenue growth rate can extend a 10-month runway to 15+ months by reducing net burn over time.
Financial Inputs
Planned Funding Round (optional)
Gross Burn
$200.0k/mo
Net Burn
$120.0k/mo
Static Runway
12.5 mo
No growth assumed
Dynamic Runway
36+ mo
With 5%/mo growth
Cash Balance Projection (24 Months)
Monthly Runway Projection
| Month | Revenue | Expenses | Net Burn | Cash Balance |
|---|---|---|---|---|
| Month 1 | $84.0k | $200.0k | -$116.0k | $1.38M |
| Month 2 | $88.2k | $200.0k | -$111.8k | $1.27M |
| Month 3 | $92.6k | $200.0k | -$107.4k | $1.16M |
| Month 4 | $97.2k | $200.0k | -$102.8k | $1.06M |
| Month 5 | $102.1k | $200.0k | -$97.9k | $964.2k |
| Month 6 | $107.2k | $200.0k | -$92.8k | $871.4k |
| Month 7 | $112.6k | $200.0k | -$87.4k | $783.9k |
| Month 8 | $118.2k | $200.0k | -$81.8k | $702.1k |
| Month 9 | $124.1k | $200.0k | -$75.9k | $626.2k |
| Month 10 | $130.3k | $200.0k | -$69.7k | $556.5k |
| Month 11 | $136.8k | $200.0k | -$63.2k | $493.4k |
| Month 12 | $143.7k | $200.0k | -$56.3k | $437.0k |
| Month 13 | $150.9k | $200.0k | -$49.1k | $387.9k |
| Month 14 | $158.4k | $200.0k | -$41.6k | $346.3k |
| Month 15 | $166.3k | $200.0k | -$33.7k | $312.6k |
| Month 16 | $174.6k | $200.0k | -$25.4k | $287.2k |
| Month 17 | $183.4k | $200.0k | -$16.6k | $270.6k |
| Month 18 | $192.5k | $200.0k | -$7.5k | $263.1k |
Key Formulas
Gross Burn
Total Monthly ExpensesTotal cash out the door each month, before subtracting revenue.
Net Burn
Expenses − RevenueThe actual rate your cash reserves shrink each month.
Runway (Static)
Cash ÷ Net BurnHow many months you can operate at the current burn rate with no growth.
When to Use This Calculator
Pre-fundraise planning
Determine how much time you have before needing to raise and what trajectory gets you to the next milestone.
Board reporting
Show investors a clear monthly cash projection with assumptions documented and visible.
Headcount decisions
Model the impact of a new hire (added to expenses) against the expected revenue contribution.
Burn reduction scenarios
Simulate how cutting expenses by 20% extends runway and changes your fundraising timeline.
Frequently Asked Questions
What is gross burn rate?
Gross burn rate is the total cash your company spends each month, regardless of revenue. It equals your total monthly operating expenses. This is the number investors use to understand your maximum cash consumption in a zero-revenue scenario.
What is net burn rate?
Net burn rate is monthly expenses minus monthly revenue. If you spend $200k and earn $80k, your net burn is $120k/month. This is the actual rate at which you are consuming your cash reserves.
How is startup runway calculated?
Static runway = Cash on Hand ÷ Net Burn Rate. If you have $1.5M and burn $150k/month net, your runway is 10 months. Dynamic runway accounts for revenue growth: as revenue increases, net burn decreases and runway extends.
How much runway should a startup have before fundraising?
Most investors recommend starting your fundraising process with at least 9–12 months of runway remaining. A typical raise takes 3–6 months to close. Starting with less than 6 months of runway significantly weakens your negotiating position.
What is ramen profitability?
Ramen profitability means your startup generates just enough revenue to cover its expenses — net burn is zero or negative. It removes the immediate pressure to raise funding.