Cash Burn Rate Calculator

Description
As well as calculating the projected cash burn rate and your historical cash burn rate, this calculator will also let you know when you're going to run out of cash.

Cash Burn Rate is the term used to describe the rate at which a new business is spending its cash reserves (VC, owner savings, or loan proceeds) to pay for operating costs before it generates cash inflows from sales. It's a measure of the use of cash reserves or of negative cash flow.

Usually there are two main reasons why an established business may have a negative monthly cash flow:

1. Due to operating losses, cash is being depleted every month.

2. Cash is being depleted every month due to inventory investments or debt repayment.

The burn rate is usually quoted according to the amount of monthly negative cash outflow. It does not refer to your company's operating loss regarding profit and loss. Profit/loss and cash flow are not the same thing.