Why it matters
Burn rate measures how quickly your business spends its available cash. It is critical for startups and growing businesses to monitor their "runway" to plan for profitability or future funding rounds.
Calculate how many months your cash will last at current spending levels and understand your business runway.
How it works
Burn rate measures how quickly your business spends its available cash. It is critical for startups and growing businesses to monitor their "runway" to plan for profitability or future funding rounds.
Burn Rate = Expenses - IncomeRunway = Cash ÷ Burn Rate