Know Your Burn Rate. Control Your Future.
In 60 seconds, find out exactly how long your cash will last and what to do next.
Quick burn rate calculator
3-Month Cash Check
The fastest way to estimate your burn rate. Just enter your cash balance at the end of each month.
Enter your ending cash balance for each of the last 3 months to get started.
This is a high-level estimate based on average burn. Real runway depends on variable expenses, revenue changes, hiring plans, and more. For a complete picture, speak with a Finvisor advisor.
This calculator is for informational purposes only and does not constitute financial advice.
What This Simple Method Gets Right and Wrong
The 3-month cash balance method is a great starting point, but it has real limitations you should know about.
Instant clarity
No spreadsheets, no accountant needed. Three numbers and you have a directional answer in under a minute.
Ignores the “why” behind spending
It lumps recurring burn with one-time strategic investments.
Easy to maintain
Anyone can update this monthly with a bank statement. No financial background required.
Assumes steady burn
One-time expenses (equipment, legal fees, hiring) will distort the average and mislead you.
Great for early-stage
When your business is simple and burn is consistent, this captures ~80% of the picture.
Misses future commitments
Signed contracts, upcoming payroll increases, and lease obligations are invisible to this method.
Useful for investor conversations
Investors often ask for runway in simple terms. This gives you a credible, quick answer.
No scenario planning
You can’t model “what if we hire 3 engineers?” or “what if sales drop 20%?” with this approach.
Instant clarity
No spreadsheets, no accountant needed. Three numbers and you have a directional answer in under a minute.
Ignores the “why” behind spending
It lumps recurring burn with one-time strategic investments.
Easy to maintain
Anyone can update this monthly with a bank statement. No financial background required.
Assumes steady burn
One-time expenses (equipment, legal fees, hiring) will distort the average and mislead you.
Great for early-stage
When your business is simple and burn is consistent, this captures ~80% of the picture.
Misses future commitments
Signed contracts, upcoming payroll increases, and lease obligations are invisible to this method.
Useful for investor conversations
Investors often ask for runway in simple terms. This gives you a credible, quick answer.
No scenario planning
You can’t model “what if we hire 3 engineers?” or “what if sales drop 20%?” with this approach.
Go Deeper
More Precise Ways to Calculate Burn & Runway
As your business grows, more sophisticated methods give you sharper, more actionable numbers. In practice, these metrics are usually calculated from an accrual-based P&L, which provides a clearer view of business performance than cash timing alone. The formulas below provide a simplified way to calculate them, but working with full financial statements will produce more precise results.
Gross Burn
Gross burn is total cash spent each month, regardless of revenue. It answers: “How much are we spending?” — not how much we’re losing.
- Gross Burn = Total Monthly Cash Outflows
- Best for: understanding your full cost structure, comparing against budget, and identifying where money actually goes.
Choose a calculation
Which Method Is Right for You?
Choose based on your stage, complexity, and how much time you have.
| Method | Setup Time | Accuracy | Insight Level | Typical Use Case | How Finvisor Can Help |
|---|---|---|---|---|---|
| 3-Month Cash Balance | ~1 min | Basic | Very limited | Quick snapshot of how long cash might last | Quick-start |
| Gross Burn Rate | ~15 min | Moderate | Limited | Understanding total monthly spending | Setup and review |
| Net Burn Rate | ~30 min | Good | Moderate | Tracking operational cash loss over time | Monthly tracking |
| Weighted Average | ~1 hr | Good | Strong | Smoothing irregular spending patterns | Model build |
| 12-Month Forecast | 2–5 days | Highest | Full strategic insight | Planning runway, hiring, and fundraising | Full CFO service |
- Setup Time
- ~1 min
- Accuracy
- Basic
- Insight Level
- Very limited
- Typical Use Case
- Quick snapshot of how long cash might last
- How Finvisor Can Help
- Quick-start
- Setup Time
- ~15 min
- Accuracy
- Moderate
- Insight Level
- Limited
- Typical Use Case
- Understanding total monthly spending
- How Finvisor Can Help
- Setup and review
- Setup Time
- ~30 min
- Accuracy
- Good
- Insight Level
- Moderate
- Typical Use Case
- Tracking operational cash loss over time
- How Finvisor Can Help
- Monthly tracking
- Setup Time
- ~1 hr
- Accuracy
- Good
- Insight Level
- Strong
- Typical Use Case
- Smoothing irregular spending patterns
- How Finvisor Can Help
- Model build
- Setup Time
- 2–5 days
- Accuracy
- Highest
- Insight Level
- Full strategic insight
- Typical Use Case
- Planning runway, hiring, and fundraising
- How Finvisor Can Help
- Full CFO service
Know the difference
The Method You Choose Changes Everything
The same company can appear to have 8 months of runway or 18 months, depending entirely on how you calculate it. That’s not a trick. It’s the difference between looking at gross spending and understanding the full cash impact of the business.
The simple cash method ignores $40K/mo in revenue—a 53% understatement of runway
The 12-month forecast factors in a planned revenue ramp, showing the real picture
Telling investors “8 months” vs “18 months” shapes your entire fundraising strategy
The right model gives you leverage—the wrong one costs you valuation
600+
Companies supported
$500M+
Raised by clients
12+
Years in practice
More than a formula. Manage your burn like a pro, with Finvisor
Finvisor provides fractional CFO services and financial advisory for startups and growing businesses. We build the models, run the forecasts, and sit in your corner when it counts.