Download Mobile AppBurn Rate Calculator
Understand your startup's monthly spending patterns with gross and net burn rate calculations.
Gross vs Net Burn
Gross burn is your total monthly spending. Net burn is spending minus revenue—the actual cash you're losing each month. Understanding both helps you plan runway and fundraising.
Monthly Expenses
Your Burn Rate
Tips to Reduce Burn
- •Review software subscriptions quarterly
- •Consider remote work to reduce office costs
- •Focus marketing spend on high-ROI channels
- •Negotiate payment terms with vendors
Use burn rate to control cash pressure
Burn rate is more than a monthly expense total. It shows which costs are fixed, which can change, and how quickly the team needs to adjust.
Separate gross and net burn
Gross burn shows spending discipline. Net burn shows how much cash leaves the business after revenue.
Group costs by owner
Tie payroll, software, marketing, and vendor costs to accountable owners so follow-up decisions are easier.
Watch trend, not one month
Compare burn over several months before cutting useful spend or assuming growth will cover the gap.
Turn burn review into team execution
After calculating burn, move the next actions into the workspace where founders, finance, and team leads already coordinate work.
- Create expense-review tasks for categories that moved most since the last month.
- Store vendor notes, subscription decisions, and budget assumptions in shared docs for later review.
- Use chat and meetings only for decisions that need discussion, then capture the outcome as tasks.
Burn rate calculator FAQs
Gross burn rate is the total amount a startup spends each month before subtracting revenue.
Net burn rate is monthly spending minus monthly revenue. It shows how much cash the company actually loses or gains each month.
Most startups should review burn rate monthly and revisit it whenever hiring, revenue, vendor spend, or funding assumptions change.