Use this burn rate calculator and startup runway template to get a clear picture of your current and future startup revenue and expenses.
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Get a clear picture of your current and future startup revenue, expenses and runway with this burn rate calculator and startup runway template.
This tool is essential for startup founders who need a simple & visual view of cash runway. It helps you model expenses, revenue, and determine the startup's runway – how long your business can continue operating before funds run out.
The burn rate is the rate at which a company spends its capital. It’s a critical metric for startups because it reveals how quickly cash reserves are being consumed. Burn rate is typically calculated monthly and split into two types:
The runway refers to the amount of time a startup has left to continue operating at its current burn rate before it uses up all its cash reserves. It is usually represented in months - ie. how many months are left until the current cash reserves are used up, and additional funding or revenue is required.
Runway is usually calculated by dividing the startup’s current cash reserves by its monthly net burn rate.
This template consists of four essential components to help you calculate, plan, and visualize your startup’s burn rate and runway, organized into separate tabs:
1. Expenses data
Enter your monthly expenses here. Break this down by categories like payroll, tech stack, and other recurring costs. Tracking these accurately will give you an up-to-date gross burn rate.
2. Revenue data
Input your revenue sources - including customer acquisition and MRR or ARR. This section enables you to visualize trends and measure revenue stability, which will impact runway predictions.
3. Revenue forecasting
Revenue forecasting allows you to project revenue and calculate your burn rate and runway over the next 12 months, factoring in both optimistic and conservative growth scenarios. Here, you can experiment with “what-if” projections to understand how different spending or revenue scenarios could impact your runway.
4. Summary
Use this section to summarize insights from your burn rate and runway calculations, whether presenting to your team or investors. It’s a great way to visually communicate the company’s financial health and strategic needs effectively.
Duplicate this Decipad burn rate calculator template and adapt it to your own business!
