SaaS Burn Rate & Runway Calculator

How to calculate SaaS burn rate & Runway calculator?

Burn rate shows how quickly your business uses cash each month. Runway estimates how many months your current cash will last at that burn rate.

Key formulas: Net Burn = Monthly Operating Expenses + One-Time Expenses - MRR Runway (months) = Current Cash Balance / Net Burn

Using the SaaS burn rate & Runway calculator calculator: an example

Example inputs: Current cash $120,000; MRR $25,000; Monthly expenses $40,000; One-time expenses $5,000.

Step-by-step calculation:

1. Compute net burn: $40,000 + $5,000 − $25,000 = $20,000 per month.
2. Calculate runway: $120,000 ÷ $20,000 = 6 months of runway.
3. Interpretation: With these inputs you have ~6 months to reduce burn or grow MRR before cash runs out.

Frequently Asked Questions

What is the difference between gross burn and net burn?

Gross burn is total cash outflow per month. Net burn accounts for cash inflows (MRR), so net burn = outflows − inflows.

Should one-time expenses be included in burn?

Include one-time expenses in the month they occur for an accurate short-term picture, or amortize them if you prefer a smoothed monthly view.

What if net burn is zero or negative?

If net burn ≤ 0 (cash-positive), runway is effectively indefinite. Focus then shifts to growth and efficient capital allocation.

How often should I recalculate runway?

Recalculate monthly and whenever you have material changes in cash, expenses, or revenue to keep planning accurate.