Gross burn is total monthly cash outflow. Net burn is monthly expenses minus monthly revenue.
Gross burn is total monthly cash expense. Net burn is expenses minus revenue. Runway should usually be calculated from net burn.
How this calculator works
This burn rate calculator is designed for SaaS, subscription, and recurring-revenue businesses. Enter your current operating numbers to get a fast directional result.
Net burn = monthly cash expenses − monthly revenue
Keep the reporting period consistent. Monthly metrics should use monthly revenue, monthly churn, and monthly acquisition counts.
How to use it
- Use clean finance or analytics data from the same period.
- Exclude one-time revenue when calculating recurring revenue metrics.
- Compare the result against prior months to see trend direction, not just one snapshot.
Result interpretation
Gross burn is total monthly spend. Net burn is spend minus revenue. Runway planning should usually use net burn unless revenue is highly uncertain.
FAQ
What is burn rate?
Burn rate is how quickly a company spends cash, usually measured monthly.
Gross burn vs net burn?
Gross burn is total cash expenses. Net burn subtracts revenue from expenses.
How should I use this result?
Use it as a quick operating metric, then compare it with cohort trends, cash flow, pricing changes, and acquisition channel quality.
Is this calculator exact accounting?
No. It is a planning calculator. Use consistent definitions from your finance reports when making board or investor decisions.