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Gross Burn Rate Calculator

Enter monthly salaries, overhead, and other costs to find the gross burn rate.

How it is calculated

Gross burn is the sum of three monthly cash outflows: gross burn = salaries + overhead + other. The tool then gives annual burn = gross burn × 12 and daily burn = gross burn / 30.44, where 30.44 is the average number of days in a month (365.25 / 12). All three inputs must be filled in with zero or more; an empty field returns no result, so type 0 for a category you do not have. Revenue is not subtracted: that would give the net burn. Salaries should include payroll taxes and benefits if they are cash you pay. The amounts are shown with a $ sign, which is only a label for your currency.

Worked example

A startup pays 42,000 in salaries, 6,500 in overhead (rent, software, insurance) and 3,500 in other costs each month. Gross burn: 42,000 + 6,500 + 3,500 = $52,000.00. Annual burn: 52,000 × 12 = $624,000.00. Daily burn: 52,000 / 30.44 ≈ $1,708.28. If 20,000 of revenue comes in each month, net burn would be 32,000, but the gross figure stays at 52,000 because it ignores income.

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Common mistakes

  • Subtracting revenue. Gross burn is spending before any income; the figure that nets out revenue is net burn, which this tool does not compute.
  • Leaving a field empty when there is nothing to enter. All three fields are required, so type 0.
  • Entering annual figures into monthly fields, such as a yearly salary bill. The result would be twelve times too high.
  • Leaving out payroll taxes, benefits and contractor fees from salaries, which makes the burn look lower than the actual cash leaving the account.
  • Dividing a cash balance by the daily or annual figure to get runway. Runway uses the monthly gross burn (or net burn) and the cash in the bank, and this tool does not compute it.

Sources

About this calculator

Gross burn rate is the total cash a startup spends in a month — salaries, overhead, and other operating costs combined — without netting out any revenue coming in, which is what separates it from “net burn.” Multiplying the monthly figure by 12 gives the annual burn, and dividing by roughly 30 gives the daily burn.

Startup founders and investors track gross burn alongside cash in the bank to calculate runway — how many months the company can operate before running out of money — and it’s a standard line item in board decks and fundraising conversations.

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