SaaS Burn Rate & Cash Runway Calculator for 2026

Calculate your gross burn, net burn, cash runway in months, and Burn Multiple to see exactly how long your startup's cash will last.

Mathematical Audit

How Burn Rate & Cash Runway Are Calculated

Gross burn is your total monthly cash outflow. Net burn subtracts incoming revenue. Runway divides your cash balance by net burn to show how many months you have left at the current spending pace.

Gross Burn Rate = Total Monthly Operating Expenses
Net Burn Rate = Gross Burn Rate − Monthly Revenue
Cash Runway (months) = Current Cash Balance ÷ Net Burn Rate
Burn Multiple = Annualized Net Burn ÷ Net New ARR (trailing 12 months)

If Net Burn Rate is zero or negative, the company is cash-flow positive and runway is effectively infinite. Burn Multiple under 1x is considered excellent capital efficiency, 1x–2x is acceptable, and above 2x signals inefficient spending relative to growth.

Operational Guide

How to Use the Burn Rate & Cash Runway Calculator

1

Enter Current Cash Balance

Your total cash and cash-equivalents on hand today, including any undrawn credit facilities you plan to count as usable cash.

2

Enter Monthly Revenue

Cash collected from customers each month — use actual collections, not booked/accrued revenue, for the most accurate burn picture.

3

Enter Monthly Operating Expenses

All monthly cash outflows: payroll, rent, software, marketing, and other operating costs.

4

Enter Net New ARR

New annual recurring revenue added over the trailing 12 months, used to calculate your Burn Multiple efficiency score.

5

Review your runway

See gross burn, net burn, months of runway remaining, and how efficiently your burn is converting into growth.

Real-World Scenario Example

"A seed-stage SaaS company has $500,000 in the bank, collects $25,000/month in revenue, spends $90,000/month, and added $300,000 in net new ARR over the past year."

Inputs

cashBalance:500000
monthlyRevenue:25000
monthlyOperatingExpenses:90000
netNewArr:300000

Result

Net Burn Rate = $65,000/month, Cash Runway = 7.7 months, Burn Multiple = 2.6x — spending is outpacing growth and a fundraise or cost cut is needed soon.

Important Disclaimer

This calculator provides estimates for planning purposes only. Actual runway can vary based on payment timing, seasonality, one-time expenses, and changes in revenue or spending not captured in a single monthly snapshot.