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E-commerce Burn Rate & Runway Calculator
Calculate your startup burn rate, cash runway, and projected zero-cash date. Model revenue growth scenarios to plan fundraising and spending.
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How you compare
Your calculated rate against market benchmarks.
Comfortable runway. Focus on growth milestones.
Insights
Personalized analysis based on your inputs.
Good
Over 12 months of runway
With 13 months of runway, you have time to execute without panic. But burn rate should still be monitored monthly.
→ Use this runway to hit growth milestones. Set quarterly checkpoints to reassess burn rate and fundraising timing.
Info
Revenue growth adds ~8 months of runway
At 5% monthly revenue growth, your effective runway extends from 13 to 20 months. Growth is your most powerful runway lever.
→ Protect the growth rate. Cutting marketing to reduce burn can backfire if it slows revenue growth more than it saves.
Good
Break-even projected in month 23
At 5% monthly growth, revenue should exceed expenses in approximately 23 months. After that, the business becomes self-sustaining.
→ Ensure you have enough runway to reach this milestone. If break-even is beyond your runway, you need to either cut burn or raise capital.
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Frequently Asked Questions
What is burn rate and why does it matter for startups?
Burn rate is the speed at which a company spends its cash reserves before generating positive cash flow. It matters because it determines your runway — how many months you can operate before running out of money. Investors and founders track burn rate to plan fundraising timelines and spending decisions.
How do I calculate my startup runway?
Divide your current cash balance by your monthly net burn rate (total monthly expenses minus monthly revenue). For example, if you have $500,000 in the bank and burn $50,000/month net, your runway is 10 months. Factor in revenue growth for a more optimistic projection.
What is a healthy burn rate for a startup?
A healthy burn rate depends on your stage and fundraising status. Early-stage startups typically aim for 18-24 months of runway after each funding round. If your runway drops below 6 months, it is critical to either raise funds, cut costs, or accelerate revenue.
What is the difference between gross and net burn rate?
Gross burn rate is your total monthly spending regardless of revenue. Net burn rate subtracts monthly revenue from monthly expenses, showing the actual cash you lose each month. Net burn is more useful for companies with revenue, while gross burn matters for pre-revenue startups.
When should I start worrying about my burn rate?
Start actively managing burn when your runway drops below 12 months. Below 6 months is critical — you should be fundraising, cutting costs, or both. Also watch for rising burn rates that outpace revenue growth, as this signals unsustainable spending patterns.