Your burn rate will tell you the number of months between right now and "we can't make payroll." It's a countdown. The founders who survive are the ones who know exactly how much time they have and make every month count. Use our free runway calculator below to find out how to manage your cash on hand today.
Burn rate is how fast you're spending cash each month. There are two versions:
If you're pre-revenue, they're the same. If you're making money, net burn is what matters for runway.
Runway is how many months you can survive at your current burn rate.
The metric investors actually care about: Burn multiple (Net Burn ÷ Net New ARR). It shows how efficiently you're turning spending into revenue.
AI-native companies are hitting this
The new target for Series A
Fine for now, optimize soon
You'll struggle to raise
The bar has shifted. Midjourney generates $200M annually with 11 employees. That's the efficiency standard investors now measure you against.
Watch for these red flags that indicate your burn rate may be unsustainable.
Spending $2+ for every $1 of new revenue
Without active fundraising in progress
Your expenses are outpacing your growth
If one customer churns, you're in trouble
This calculator is for informational purposes only. Consult with a financial advisor for guidance specific to your situation.