Summary
This burn rate calculator turns cash on hand, monthly revenue, and monthly opex into gross burn, net burn, and runway in months, the same math used across VC due diligence. Enter a proposed raise amount to see post-raise runway, and get a stage-scaled flag, pre-seed, seed, or Series A, when runway sits below the typical buffer needed before the next round. Built for analysts screening a deal or checking a portfolio company's cash position before the founder raises it with you.
Burn Rate Calculator: Model Runway Before the Next Raise
Enter cash on hand, monthly revenue, and monthly opex to get gross burn, net burn, and runway in months, then stress-test the number against a proposed raise size before it goes into the memo.
The math behind the runway number
Gross vs. net burn
Gross burn is total monthly opex, before any revenue is netted out. Net burn subtracts monthly revenue from that figure, and it is what actually depletes cash on hand and drives runway, so it is the number worth anchoring a screening call on.
Runway math
Runway in months equals cash on hand divided by net burn, the same division every fund and accelerator uses. When revenue clears opex, net burn turns negative and the company is cash-flow positive: runway stops being a limiting factor at all.
Stage-scaled screening flag
The flag scales with deal stage. Pre-seed, seed, and Series A companies face different typical fundraising timelines, so the tool applies a different runway floor to each, rather than one blanket number for every deal on your desk.
The buffer this tool applies, by stage
From input to a screening call in three steps
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1
Enter the three burn inputs
Cash on hand, monthly revenue, and monthly operating expenses, pulled from the data room, the cap table update, or the founder's latest monthly investor email.
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2
Read gross burn, net burn, and runway
The widget computes both burn figures and converts net burn into a runway in months, live, as you adjust any input, along with a flag scaled to the deal's stage.
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3
Add the proposed raise
Enter the round size under discussion to see the resulting post-raise runway, a fast sanity check before the number goes into the IC memo or gets read out on the partner call.
Common questions
Is this free to use?
Where does the runway formula come from?
What counts as monthly operating expenses?
Why does the flag threshold change by deal stage?
What happens if net burn comes out negative?
Does this replace the IC memo's cash section?
Can I use it for portfolio monitoring, not just new deals?
Should I use the founder's own burn number or recompute it?
Bring the runway math into your next IC memo.
Accorata generates the same kind of cash read automatically, cited and IC-ready, across your whole shortlist.