Burn rate calculator: know your cash runway in 2026
BigIdeasDB's free burn rate calculator shows you exactly how long your cash will last. Enter your expenses, revenue, and cash on hand to calculate net burn and runway in months. It is essential for fundraising, board updates, and deciding when to hire or cut. No signup, no email, instant result.
How much runway should a startup have?
The fast answer: aim for 12 to 18 months of runway after a raise, and start fundraising again when you hit about 6 months. Dropping below 6 months is the point where investors and strong hires get nervous, because it signals you may have to raise from a position of weakness. Runway is simply your cash on hand divided by your monthly net burn, which is exactly what the calculator above computes.
Gross burn vs net burn vs burn multiple
- Gross burn is your total monthly cash spend, regardless of revenue.
- Net burn is gross burn minus monthly revenue. It is the number that actually drains your bank account, and the one that sets your runway.
- Burn multiple is net burn divided by net new revenue. Below 1x is excellent, 1x to 2x is healthy, and above 2x means you are spending a lot to buy each new dollar of recurring revenue.
How to extend your runway
- Grow revenue first. Every dollar of recurring revenue directly reduces net burn and lengthens runway.
- Delay big hires until you have clear product-market fit. Payroll is usually the largest line item.
- Cut or renegotiate software and vendor costs. Annual prepay and startup discounts add up.
- Watch the burn multiple, not just the burn. Efficient growth buys you far more time than aggressive growth.
How this calculator works
Enter your monthly expenses, monthly revenue, and current cash. The tool calculates gross burn, net burn, burn multiple, and runway in months, then flags whether your runway is healthy or a risk. It runs entirely in your browser, requires no signup, and stores nothing.
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