Finance
Burn Rate & Runway Calculator
Understand your net cash consumption and how many months your company can survive before needing additional funding or reaching profitability.
What this calculator does
The Burn Rate & Runway Calculator calculate how fast you are spending cash, then compares your result against operator benchmarks (Pre-seed: $10k-$50k/mo. Seed: $50k-$200k/mo. Target 18-24 mo runway.). Enter your numbers below and you'll get a result, a benchmark band, and a plain-English interpretation in under two minutes.
Inputs
Current cash balance
Average monthly recurring revenue
Total monthly operating costs
Results
Cash runway
20.0 months
At current burn of $50,000/mo
Net burn
$50,000
Gross burn
$100,000
Runway health
Healthy
What this means
20.0 months of runway gives you breathing room. Focus on hitting milestones that will improve your next round's valuation.
Formula
Net Burn = Monthly Expenses - Monthly Revenue. Runway = Cash in Bank / Net Burn.Benchmarks: Pre-seed: $10k-$50k/mo. Seed: $50k-$200k/mo. Target 18-24 mo runway.
Sources: OpenView 2024 SaaS Benchmarks, ChartMogul Retention Reports, ProfitWell Pricing Studies, and Pressense operator data.
Frequently asked questions
What is gross vs. net burn?
Gross burn is your total monthly expenses regardless of revenue. Net burn is expenses minus revenue. Investors focus on net burn for runway, but gross burn matters when revenue is volatile or contract-dependent.
When should I raise money?
Ideally with 9-12 months of runway left. Raises take 4-6 months to close, and entering negotiations with under 6 months destroys leverage. The best time to raise is when you don't desperately need it.
How much runway should I target?
Most investors expect 18-24 months post-raise. That's enough to hit milestones for the next round without rushing back into fundraising. Less than 12 months suggests under-raising; more than 30 months suggests under-spending.
About this calculator
Built and reviewed by the Pressense team, a strategy and systems partner working with B2B SaaS operators on unit economics, retention, GTM, and positioning. Every calculator in this library uses public benchmarks from OpenView, ChartMogul, ProfitWell, and KeyBanc, supplemented with anonymised data from the operators we partner with.
Disclaimer: This calculator is for educational and planning purposes only. Outputs are estimates based on the inputs you provide and industry benchmarks, not financial, tax, legal, or investment advice. Validate all results with a qualified professional before making decisions about funding, valuation, hiring, or capital allocation.