Analyze your project's financial sustainability and time-to-zero.
Calculation Results
Gross Burn Rate$0Total monthly spend
Net Burn Rate$0Monthly cash loss
Estimated Runway0 MonthsTime until zero balance
Understanding Project Burn Rate
Project burn rate is a critical KPI (Key Performance Indicator) for startups and project managers. It measures the speed at which your venture is consuming its venture capital or budget before generating positive cash flow.
The Two Types of Burn Rate
Gross Burn Rate: This is the total amount of operating expenses your project incurs each month. It represents your total outflow regardless of income.
Net Burn Rate: This is the actual amount of money you are losing each month. It is calculated by taking your total expenses and subtracting your total revenue.
The Formula
Net Burn Rate = (Total Monthly Expenses – Total Monthly Revenue) / Months
Project Runway = Current Cash Balance / Net Burn Rate
Example Calculation
Imagine your project has $100,000 in the bank. Your monthly expenses (rent, salaries, AWS bills) total $15,000. You are currently generating $5,000 in monthly revenue.
Gross Burn: $15,000
Net Burn: $15,000 – $5,000 = $10,000
Runway: $100,000 / $10,000 = 10 Months
In this scenario, you have exactly 10 months to reach profitability or secure more funding before the project runs out of cash.
Why It Matters
Monitoring your burn rate allows for proactive decision-making. If your runway is short (typically less than 6 months), you may need to reduce costs, pivot your strategy, or begin a new fundraising round immediately. A "negative" net burn rate means your project is profitable and generating cash, extending your runway indefinitely.
function calculateBurnRate() {
var balance = parseFloat(document.getElementById('currentBalance').value);
var revenue = parseFloat(document.getElementById('monthlyRevenue').value);
var expenses = parseFloat(document.getElementById('operatingExpenses').value);
var period = parseFloat(document.getElementById('periodMonths').value);
if (isNaN(balance) || isNaN(revenue) || isNaN(expenses) || isNaN(period) || period <= 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
var grossBurn = expenses / period;
var netBurn = (expenses – revenue) / period;
var runway;
document.getElementById('resultsArea').style.display = 'block';
document.getElementById('grossBurnOutput').innerText = '$' + grossBurn.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
if (netBurn <= 0) {
document.getElementById('netBurnOutput').innerText = '$0 (Profitable)';
document.getElementById('netBurnOutput').style.color = '#27ae60';
document.getElementById('runwayOutput').innerText = 'Infinite (Cash Flow Positive)';
document.getElementById('runwayOutput').style.color = '#27ae60';
} else {
runway = balance / netBurn;
document.getElementById('netBurnOutput').innerText = '$' + netBurn.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('netBurnOutput').style.color = '#f39c12';
document.getElementById('runwayOutput').innerText = runway.toFixed(1) + ' Months';
document.getElementById('runwayOutput').style.color = '#2980b9';
if (runway < 3) {
document.getElementById('runwayOutput').style.color = '#e74c3c';
}
}
}