Monthly Burn
The net cash consumed per month after subtracting revenue from total expenses, determining how quickly available cash is depleted.
What is Monthly Burn?
Monthly burn (net burn) is total monthly expenses minus monthly revenue. If you spend $85,000 and earn $25,000, monthly burn is $60,000.
Gross burn counts only expenses ($85,000). Net burn accounts for revenue offset. Runway calculations should always use net burn unless you are pre-revenue.
Monthly burn is not static. It changes with every hire, tool, contract, and revenue milestone. Tracking month-over-month burn trend reveals compression before runway headlines change.
Why it matters
Burn rate is the speed of your countdown. Runway equals cash divided by burn. A $5,000 monthly burn increase on $60,000 net burn shortens 12-month runway by roughly one month.
Understanding burn composition (payroll vs tools vs commitments) shows where to act when extension is needed.
Formula
Monthly Net Burn = Total Monthly Expenses - Monthly Revenue
How RunwayCal helps
RunwayCal computes monthly net burn from itemized payroll, tools, and commitments, with trend charts and anomaly detection when burn accelerates.
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Know your exact monthly burn
RunwayCal breaks down monthly burn by payroll, tools, and commitments with trend tracking.
Track monthly burn → Start free