Calculator Guides
How to Calculate Burn Rate and Runway: Formulas & Free Calculator
Burn rate is how fast your startup spends cash each month. Runway is how many months you have before the money runs out. Both are critical for planning and survival.
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Burn rate formulas
Gross Burn Rate = Total monthly operating expenses. Net Burn Rate = Monthly expenses minus monthly revenue. Runway = Cash balance / Net Burn Rate.
For example, if you spend $8,000/month, earn $3,000/month in revenue, and have $30,000 in the bank: Net burn is $5,000 and runway is 6 months.
How much runway do you need
For bootstrapped micro SaaS, aim for at least 6 months of runway. This gives you time to iterate and find product-market fit without panic.
The best way to extend runway is to reduce burn, not to raise money. Cut unnecessary tools, defer hiring, and focus on revenue-generating activities.
Using the BigIdeasDB Burn Rate Calculator
Navigate to Free Tools > Burn Rate Calculator. Input your expenses, revenue, and cash balance. The calculator shows gross burn, net burn, runway in months, and a projected cash curve.
FAQ
What is a healthy burn rate for a solo founder?
For a bootstrapped solo founder, keeping net burn under $2,000-3,000/month is sustainable. Many micro SaaS founders keep burn near zero by using free tiers of services.
How do I reduce burn rate?
Audit your subscriptions and tools, use free tiers where possible, defer non-essential spending, and focus on reaching revenue break-even quickly.
Is the burn rate calculator free?
Yes. BigIdeasDB's Burn Rate Calculator is 100% free with no login required.
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