This calculator measures pre-seed gross burn and net burn from monthly cash expenses and cash revenue. It also estimates the annualized net cash consumption and the portion of expenses covered by revenue.
Burn metrics help founders understand how quickly capital is being used and how operating changes affect runway. Gross burn focuses on spending, while net burn reflects the actual monthly decline in cash after revenue collections.
1. Enter monthly cash expenses
Use operating cash paid during a representative month.
2. Enter monthly cash revenue
Use customer cash collections for the same period.
3. Review gross burn
Gross burn equals total monthly expenses before revenue.
4. Review net burn
Net burn shows the decrease in cash after subtracting revenue.
5. Use scenarios
Change hiring, vendor, or revenue assumptions to see the effect on cash consumption.
Gross burn = Monthly cash expenses
Net burn = Monthly cash expenses − Monthly cash revenue
Annualized net burn = Net burn × 12
Revenue coverage = Monthly cash revenue ÷ Monthly cash expenses × 100
The main result is the expected monthly reduction in cash under the entered revenue and expense levels.
A negative net burn indicates a monthly cash surplus rather than cash consumption.
Given: $90,000 of monthly cash expenses and $25,000 of monthly cash revenue.
Calculation: Gross burn = $90,000. Net burn = $90,000 − $25,000 = $65,000. Annualized net burn = $65,000 × 12 = $780,000. Revenue coverage = $25,000 ÷ $90,000 = 27.78%.
Result: The company consumes $65,000 of cash per month.
No. Burn is usually a cash-flow measure, so depreciation and other noncash accounting charges are excluded.
For cash burn, record them in the month paid or use a month-by-month forecast. Averaging them is acceptable for a simplified normalized view.
Yes. When cash revenue exceeds expenses, the company generates a cash surplus rather than burning cash.
Gross burn shows the underlying spending base and can reveal cost growth even when rising revenue keeps net burn stable.
Runway is generally usable cash divided by monthly net burn when net burn is positive.