Cash Position
$
$
Monthly Financials
$
$
%/mo
Net Burn Rate
—
per month
Gross Burn
—
total monthly spend
Runway
—
months
Zero-Cash Date
—
estimated
Cash Runway Visualization
Monthly Cash Projection
| Month | Revenue | Burn | Net | Cash Balance |
|---|
💡 Rule of thumb: VCs typically want to see 18+ months of runway before investing. If you have less than 6 months, you should be fundraising now. Net burn = Gross burn − Revenue.
How to calculate burn rate and runway
Burn rate is how much cash a company loses per month; runway is how many months it can survive at that pace. Investors look at net burn (after revenue), and founders are usually advised to start raising with at least 6-9 months of runway left.
Formula
Gross burn = Total monthly operating expenses Net burn = Monthly expenses - Monthly revenue Runway (months) = Cash in bank / Net burn
Example
$600,000 in the bank, $80,000 monthly expenses, $30,000 monthly revenue. Net burn = $50,000 per month; runway = 12 months.
Frequently asked questions
What is the difference between gross and net burn?
Gross burn is total monthly spending. Net burn subtracts revenue and shows how fast your cash balance actually falls.
How much runway should a startup have?
Commonly 18-24 months after a raise. Start fundraising with at least 6-9 months left, since rounds often take 3-6 months to close.
How can I extend runway?
Cut or delay the biggest expense lines (usually hiring), increase revenue or collections, renegotiate contracts, or raise bridge funding.