Burn rate
How much cash you consume per month.
Last reviewed 12 September 2026
Gross burn is everything you spend. Net burn is spend minus cash collected — the number that actually shortens your runway.
Average across three months. One-off payments like annual insurance or a tax bill make a single month look like a crisis.
Formula
Net burn = Cash out − Cash in (per month)
Frequently asked
What is burn rate?+
How much cash you consume per month. Gross burn is everything you spend. Net burn is spend minus cash collected — the number that actually shortens your runway. Average across three months. One-off payments like annual insurance or a tax bill make a single month look like a crisis.
How do you calculate burn rate?+
Net burn = Cash out − Cash in (per month)
Why does burn rate matter for founders?+
Average across three months. One-off payments like annual insurance or a tax bill make a single month look like a crisis.
Related terms
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