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Burn rate calculator

 

Calculate your company’s burn rate and predict when your cash runway will end using Carta’s free tool.

Burn rate is a measure of how quickly your company is spending cash. It’s typically calculated on a monthly basis, which can be difficult to track as an early-stage founder.

 

Input your cash balance by month into our free calculator to estimate when you’re likely to run out of cash and when you should start planning 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 (e.g. one month, three months or longer).
  • Net burn rate equals (=) gross burn rate minus (-) monthly revenue

 

Over 40,000 private companies use Carta to manage their cap tables, investors and valuations. Find out how Carta’s software and services can help you prepare for your next funding round and make informed decisions about how much capital to raise.

 

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