Burn Rate Calculator
Calculate Burn Rate step by step: Net burn = (cash at start − cash at end) ÷ months.
In short
Formula: Net burn = (cash at start − cash at end) ÷ months.
What this calculator does
Calculate Burn Rate step by step: Net burn = (cash at start − cash at end) ÷ months. Worked example, questions and limitations included.
Use it to turn Currency (symbol only, never converted), Cash at start, Cash at end, Months between into a checked result you can compare, copy, or rerun with different assumptions.
The page shows the formula, a numeric worked example, and the assumptions that affect this fp&a calculation.
Inputs and what they mean
- Currency (symbol only, never converted)
- — choice value.
- Cash at start
- — number value.
- Cash at end
- — number value.
- Months between
- — number value.
How to use it
- Enter each value in the unit shown next to the box (use the unit converter first if your numbers are in other units).
- Check the breakdown to see every intermediate step.
- Read the limitations before relying on the result.
Formula
Net burn as commonly used in startup finance (cash-basis).
Gross burn (total monthly spending) is a different figure — this page measures net cash decline.
A negative result means cash grew.
Net burn = (cash at start − cash at end) ÷ months.
Inputs used: Currency (symbol only, never converted), Cash at start, Cash at end, Months between.
Worked example
A quarter
- 600,000 − 450,000 = 150,000.
- ÷ 3 = $50,000 per month.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
Limitations and assumptions
- Backward-looking average.
- No standard body defines burn; conventions vary.
- Results are educational estimates built only from the figures you enter. They are not personalised investment, tax, legal or accounting advice. Rates, growth and discount assumptions are always yours to choose.
- The result depends on the values you enter for this burn rate calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.
Common questions
Net or gross burn?
This is net burn: cash lost after any revenue. Gross burn is total spending before revenue.
Should fundraising be excluded?
Yes — exclude new financing so burn reflects operations. Check the formula, example, and limitations on this page before using the result for a real fp&a decision.
Is this a prediction?
No. It projects the assumptions you enter. Growth, rates and scenarios are your choices — none are built in.
How do I use the Burn Rate Calculator?
Enter the required values for Currency (symbol only, never converted), Cash at start, Cash at end, Months between. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.
What formula does the Burn Rate Calculator use?
Net burn = (cash at start − cash at end) ÷ months. The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.
Can the Burn Rate Calculator be used for exact decisions?
Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.
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