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Calculate burn rate and runway (with formulas)

Know exactly how many months you have left — and when to raise or cut.

6 min read intermediateUpdated Apr 4, 2025
BI
Reviewed by the editorial team · Apr 4, 2025

Step by step

  1. 01

    Gross vs net burn

    Gross burn = monthly expenses. Net burn = expenses − revenue.

  2. 02

    Runway formula

    Cash on hand ÷ net burn = months of runway.

  3. 03

    Start fundraising at 9 months

    Raises take 3–6 months — never start at 3.

  4. 04

    Cut levers

    Headcount > tools > marketing. Always cut tools first.

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