SaaS Cost Burn & Runway Calculator
Evaluate your startup’s financial coordinates. Input your cash balance and MRR, add itemized operational expenses, and model scenarios to verify if you are Default Alive.
Financial Coordinates
Operational Expense Builder
0 itemsAdd Custom or Preset Expense
Input coordinates to forecast cash longevity.
Scenario Adjustments
Cash & Revenue Projection (24-Month)
Interactive trajectory showing cash reserves and monthly recurring revenue.
| Month | Cash Balance | MRR | Gross Burn | Net Burn | Runway Status |
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Understanding Startup Cash Burn Rate & Runway
Use our guide to understand the key financial metrics, formulas, and terminology to keep your company healthy and calculate how long your cash will last.
01 What is the difference between gross burn and net burn?
Gross burn represents the total amount of cash your startup spends on operating expenses each month (such as payroll, hosting infrastructure, marketing, and software).
Net burn is the actual net cash lost, calculated by subtracting your monthly revenue from your gross operating expenses. When estimating your runway, net burn is the critical metric that dictates how fast your cash reserves are shrinking and when you will need to raise more capital or reach break-even.
02 How do you calculate a startup's monthly burn rate?
To calculate your monthly burn rate, subtract your total monthly operating expenses from your monthly revenue:
If you are looking at historical figures from bank statements, you can also calculate it by subtracting your ending cash balance from your starting cash balance, then dividing the result by the number of months elapsed:
Monthly Burn Rate = (Starting Cash - Ending Cash) / Months Elapsed
03 How is startup runway determined?
Runway is the number of months your business can continue operating at its current net burn rate before running out of cash. It is calculated by dividing your total current cash reserves by your monthly net burn rate:
Tracking this metric helps you determine when you need to raise additional capital, implement cost-cutting measures, or adjust pricing strategies to reach cash flow break-even before running out of cash.