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Miraç Özdemir
Cash Flow & Budgeting

Burn Rate and Cash Runway Calculator

Calculates gross and net burn rate, how many months current cash lasts (runway) and the extra funding needed for a target runway from the cash balance, monthly expenses and revenue.

Version 1

Things to keep in mind:

  • Revenue and expenses are assumed constant; hiring plans or revenue growth change the runway.
  • Use revenue actually collected and expenses actually paid, not accrued amounts.
  • Remember to include obligations such as tax, social security debts and loan repayments in expenses.
  • This tool is for information only and is not investment or financing advice.

Calculator

Cash and monthly flows

TRY

Total available cash and bank balance.

TRY

Salaries, social security, rent, software, marketing and other monthly payments.

TRY

Sales revenue actually collected in the month.

Target

How long you want cash to last; 18 months is common for funding-round planning.

After the first calculation, the result updates automatically when you change a value.

Result

Enter the values and press Calculate to see the result here.

About this tool

The burn rate shows how much cash a start-up that is not yet profitable, or a business in a growth phase, consumes each month. Runway is how many months current cash lasts at that pace. Both are key indicators for planning funding rounds and cost decisions.

Formulas

  • Gross burn = Monthly cash expenses (salaries, rent, software, marketing, etc.)
  • Net burn = Monthly expenses − Monthly revenue collected
  • Runway (months) = Cash balance / Net burn
  • Gross runway = Cash balance / Gross burn (if no revenue comes in)
  • Cash needed for the target = Net burn × Target months
  • Additional funding need = max(0; Cash needed − Current cash)

Example: a start-up with 3,000,000 TRY of cash spends 450,000 TRY a month and collects 200,000 TRY of revenue. Net burn is 250,000 TRY and runway 12 months. If it targets 18 months of runway until the next funding round, it needs 4,500,000 TRY — 1,500,000 TRY of extra funding, or the same amount of cost cuts or revenue growth.

Because funding rounds typically take 6–9 months to prepare, runway should not fall below that period.

How to use

  1. Enter the total available cash and bank balance.
  2. Enter representative monthly cash expenses and revenue collected, e.g. the average of the last 3 months.
  3. Enter your target runway (months) and press Calculate.

Notes

Amounts are rounded to the cent and periods to 1 decimal (HALF_UP). If revenue covers or exceeds expenses, net burn and runway show 0, meaning "cash is not running out". Expenses and revenue are assumed constant; use the Cash Budget tool for growth, seasonality and one-off payments.

Sources

Frequently asked questions

4 questions

  1. Gross burn is total monthly cash expenses. Net burn deducts revenue collected from monthly expenses and shows how much the company loses from its cash balance each month.

Next step

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