carta

Burn rate calculator

 

Calculate your company’s burn rate and predict when your cash runway will end using Carta’s Burn Rate Calculator.

Burn rate measures how quickly your company is spending cash. Cash burn rate is typically calculated on a monthly basis, which can be difficult to track as an early-stage founder.

Input your cash balance by month, and our free Burn Rate Calculator for founders helps estimate when you will run out of cash and when you should plan to raise more capital.

Burn rate formula

 

Our Burn Rate Calculator measures gross and net burn rate using these formulas:

  • Gross burn rate is your company’s total monthly expenses. Calculate gross burn by determining your average spend over a period that is representative of your company’s future (a month, three months, etc).
  • Net burn rate is your gross burn minus revenue. Calculate net burn using this formula: Net burn equals (=) gross burn rate minus (-) monthly revenue

 

Make more informed decisions around how much capital to raise and when to raise it with Carta. Companies with up to 25 stakeholders and up to $1M raised can even try Carta for free.

Fill out the form below to get started  

DISCLAIMER: The following terms apply to your use of this document and your agreement to these terms is required before you are permitted to use this document. This document is provided for your reference only and is not intended to serve as legal, tax, or financial advice. You acknowledge and agree that the making available of this document to you by eShares, Inc. dba Carta, Inc. (“Carta”) shall not constitute the provision of legal service or other professional service by Carta. You should seek advice from an attorney licensed in the relevant jurisdiction(s), tax professionals, accounting professionals, and financial professionals before relying on this document. You further agree and acknowledge that this document has not been prepared with your specific circumstances in mind, may not be suitable for use in your business, and does not constitute tax advice. Relying on this document, you assume all risk and liability that may result.
 

USE OF THIS DOCUMENT IS ENTIRELY AT YOUR OWN RISK. This document is provided “as is” without warranty of any kind, either express, implied, or statutory, including without limitation, warranties of merchantability, fitness for a particular purpose, satisfactory purpose, title or noninfringement. Some jurisdictions do not allow the exclusion of implied warranties, so these exclusions may not apply to you.