Result
Burn Rate (per month)
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Burn Rate = (balance at period start − balance at period end) ÷ number of months. This is net burn — it accounts for all inflows and outflows over the period, not just spending: if the company already earns revenue, that partly offsets spending, so net burn is lower than gross spend.
Burn Rate computed this way averages spend over the whole period — if spending varied a lot month to month (say, a large one-off payment), the actual burn in individual months can differ noticeably from the average.
Burn Rate is a direct input for computing Runway (cash balance ÷ burn rate = how many months the company can survive at this pace): the value computed here can be plugged straight into the separate Runway calculator.