What is net burn rate?

Net burn is monthly cash outflow minus monthly cash inflow. It measures how quickly the cash balance is shrinking after revenue and other receipts.

How is cash runway calculated?

Divide the available cash balance by monthly net burn. The result estimates how many months remain if inflows and outflows stay constant.

What if revenue is higher than spending?

Net burn is zero or negative, so cash is not being depleted under the entered assumptions and finite runway does not apply.

Is runway the same as a cash flow forecast?

No. Runway is a simple steady-state estimate. A cash flow forecast models changing revenue, expenses and scenarios over time.

Liquidity tool

Burn rate and runway calculator

Estimate how quickly your company uses cash and how many months remain at the current pace. Compare cash inflows with operating outflows for a practical runway baseline.

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Enter your monthly cash figures

Current cash balance

Average monthly cash inflow

Average monthly cash outflow

Gross burn

$125,000

Net burn

$45,000

Cash runway

11.1 months

Projected cash balance

Hover each month to see the cash left at the current net burn. The line crosses zero when the runway ends.

At a net burn of $45,000 per month, $500,000 of cash provides approximately 11.1 months of runway.

How to use it

How the burn rate and runway calculator works

Burn rate shows the pace of cash consumption. Runway converts that pace into time, helping teams identify when financing, revenue growth or cost action may be needed.

Formula

Cash runway (months) = Current cash balance ÷ Monthly net burn

1Use unrestricted cash that is available to fund operations.
2Average representative monthly inflows and outflows; remove one-off financing receipts.
3Recalculate under lower revenue or higher spending to understand downside runway.

Worked example

With $500,000 of cash, $80,000 monthly inflow and $125,000 monthly outflow, net burn is $45,000 and estimated runway is 11.1 months.

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Frequently asked questions

What is net burn rate?: Net burn is monthly cash outflow minus monthly cash inflow. It measures how quickly the cash balance is shrinking after revenue and other receipts.
How is cash runway calculated?: Divide the available cash balance by monthly net burn. The result estimates how many months remain if inflows and outflows stay constant.
What if revenue is higher than spending?: Net burn is zero or negative, so cash is not being depleted under the entered assumptions and finite runway does not apply.
Is runway the same as a cash flow forecast?: No. Runway is a simple steady-state estimate. A cash flow forecast models changing revenue, expenses and scenarios over time.

NanoFora provides AI-generated financial analysis for informational purposes and does not constitute regulated investment, tax or legal advice.