Burn Rate Calculator: calculate burn rate for your business. Formula, benchmarks, and practical tips included.
Monthly burn = Expenses − Revenue (net cash consumed each month). Runway = Cash ÷ Monthly burn (simple, no-growth estimate).
The calculator uses a dynamic simulation: each month, revenue grows by the set % rate; when revenue exceeds expenses, burn becomes negative (the company is profitable). Break-even month is when revenue ≥ expenses.
Worked example: £500,000 cash, £20,000 MRR, £80,000 expenses, 10% monthly growth. Month 1 burn = £60,000; cash = £440,000. Month 2 rev = £22,000; burn = £58,000; cash = £382,000. By Month 18, revenue ≈ £111,000 > £80,000 expenses — break-even reached. Total runway ≈ 20 months before reaching cash-flow positive. Without growth, runway = £500k ÷ £60k = 8.3 months.