.burn-rate-calculator-wrapper {
max-width: 800px;
margin: 0 auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
color: #333;
line-height: 1.6;
}
.calculator-box {
background: #f8f9fa;
border: 1px solid #e9ecef;
border-radius: 8px;
padding: 30px;
margin-bottom: 40px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.calc-grid {
grid-template-columns: 1fr;
}
}
.input-group {
margin-bottom: 20px;
}
.input-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #495057;
}
.input-wrapper {
position: relative;
}
.input-prefix {
position: absolute;
left: 12px;
top: 50%;
transform: translateY(-50%);
color: #6c757d;
}
.input-group input {
width: 100%;
padding: 12px 12px 12px 30px;
border: 1px solid #ced4da;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.input-group input:focus {
border-color: #007bff;
outline: none;
box-shadow: 0 0 0 3px rgba(0,123,255,0.1);
}
.btn-calculate {
background-color: #007bff;
color: white;
border: none;
padding: 15px 30px;
font-size: 18px;
font-weight: bold;
border-radius: 4px;
cursor: pointer;
width: 100%;
margin-top: 10px;
transition: background-color 0.2s;
}
.btn-calculate:hover {
background-color: #0056b3;
}
.results-section {
margin-top: 30px;
background: white;
border-radius: 6px;
padding: 20px;
border: 1px solid #dee2e6;
display: none;
}
.result-row {
display: flex;
justify-content: space-between;
align-items: center;
padding: 12px 0;
border-bottom: 1px solid #eee;
}
.result-row:last-child {
border-bottom: none;
}
.result-label {
font-weight: 500;
color: #666;
}
.result-value {
font-weight: 700;
font-size: 1.2em;
color: #212529;
}
.highlight-result {
color: #dc3545;
font-size: 1.4em;
}
.highlight-positive {
color: #28a745;
}
.article-content h2 {
margin-top: 40px;
color: #2c3e50;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
}
.article-content h3 {
margin-top: 25px;
color: #34495e;
}
.formula-box {
background: #e8f4fd;
padding: 15px;
border-left: 4px solid #007bff;
margin: 20px 0;
font-family: monospace;
}
.error-msg {
color: #dc3545;
margin-top: 10px;
font-weight: 600;
display: none;
}
How to Calculate Burn Rate Percentage
Understanding your burn rate percentage is crucial for startups and businesses operating with limited cash reserves. While standard "burn rate" tells you how many dollars you are losing per month, the Burn Rate Percentage tells you what portion of your total cash reserves is being depleted every month. This metric is vital for understanding the velocity at which your business is approaching a zero-cash balance.
Burn Rate % = (Net Monthly Burn / Current Cash Balance) × 100
Step-by-Step Calculation Logic
To use the calculator above effectively, you need to understand the three core components of the formula:
- Current Cash Balance: This is the total amount of liquid capital currently available in your bank accounts.
- Gross Burn (Expenses): The total amount of money leaving your bank account monthly (Salaries, Rent, Server costs, COGS).
- Net Burn: This is calculated by subtracting your Monthly Revenue from your Gross Burn. If your revenue covers your expenses, your net burn is zero or negative (indicating profit).
Interpreting the Results
Once you have calculated your burn rate percentage, here is how to interpret the health of your startup:
- 1% – 5%: Healthy. You have a long runway (20+ months). You have time to experiment and grow slowly.
- 5% – 10%: Moderate. You have roughly 10-20 months of runway. You should be focusing on growth or the next funding round.
- Above 10%: High Alert. You are burning more than 10% of your bank account every month. You have less than 10 months to survive without new funding or revenue spikes. Immediate action is required to cut costs or raise capital.
Difference Between Gross Burn and Net Burn
It is important not to confuse Gross Burn with Net Burn when calculating percentages. Gross Burn is purely what you spend. Net Burn accounts for income.
Example: If you spend $50,000/month but make $30,000/month, your Net Burn is only $20,000. Your percentage calculation should be based on the $20,000 loss, as that is the actual amount depleting your reserves.
Why Monitoring Burn Percentage Matters
While "Runway" (measured in months) is a common metric, Burn Rate Percentage is often used by investors to gauge capital efficiency. A lower percentage implies that the company is stewarding its capital effectively relative to the size of its war chest.
function calculateBurnRate() {
// Get inputs
var cashBalance = document.getElementById('currentCash').value;
var expenses = document.getElementById('monthlyExpenses').value;
var revenue = document.getElementById('monthlyRevenue').value;
var errorMsg = document.getElementById('errorMsg');
var resultsSection = document.getElementById('resultsSection');
// Reset UI
errorMsg.style.display = 'none';
resultsSection.style.display = 'none';
// Validation
if (cashBalance === "" || expenses === "" || revenue === "") {
errorMsg.style.display = 'block';
return;
}
var cash = parseFloat(cashBalance);
var exp = parseFloat(expenses);
var rev = parseFloat(revenue);
if (isNaN(cash) || isNaN(exp) || isNaN(rev)) {
errorMsg.style.display = 'block';
return;
}
if (cash < 0 || exp < 0 || rev < 0) {
errorMsg.innerText = "Values cannot be negative.";
errorMsg.style.display = 'block';
return;
}
// Calculations
var netBurn = exp – rev;
var burnPercentage = 0;
var runway = 0;
var isProfitable = false;
if (netBurn 0) {
burnPercentage = (netBurn / cash) * 100;
runway = cash / netBurn;
} else {
burnPercentage = 100; // If no cash and burning money, effectively 100% dead immediately
runway = 0;
}
}
// Display Results
resultsSection.style.display = 'block';
// Format Net Burn
var currencyFormatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
if (isProfitable) {
document.getElementById('netBurnDisplay').innerHTML = "
";
document.getElementById('runwayDisplay').innerText = "Infinite";
document.getElementById('burnPercentDisplay').innerText = "0%";
document.getElementById('burnPercentDisplay').className = "result-value highlight-positive";
document.getElementById('analysisText').innerText = "Great job! Your business is cash flow positive. You are not depleting your cash reserves.";
} else {
document.getElementById('netBurnDisplay').innerText = currencyFormatter.format(netBurn);
// Format Runway
if (runway === Infinity) {
document.getElementById('runwayDisplay').innerText = "Infinite";
} else {
document.getElementById('runwayDisplay').innerText = runway.toFixed(1) + " Months";
}
// Format Percentage
document.getElementById('burnPercentDisplay').innerText = burnPercentage.toFixed(2) + "%";
document.getElementById('burnPercentDisplay').className = "result-value highlight-result";
// Analysis Text logic
var analysis = "";
if (burnPercentage > 10) {
analysis = "Warning: You are depleting over 10% of your cash monthly. Runway is tight.";
} else if (burnPercentage > 5) {
analysis = "Caution: Moderate burn rate. Monitor expenses closely.";
} else {
analysis = "Healthy: Your burn rate is low relative to your cash balance.";
}
document.getElementById('analysisText').innerText = analysis;
}
}