About burn rate calculator
Burn rate is how fast a company spends its cash. Gross burn is total monthly spending, and net burn is spending minus revenue.
Why both matter
Gross burn shows your cost base. Net burn shows how fast cash actually falls, and it drives your runway.
Reducing burn
Review the biggest cost lines first, usually salaries, then cloud and marketing.
A worked example
A company spends ₹12 lakh a month (gross burn) and earns ₹4 lakh in revenue, so its net burn is ₹8 lakh. With ₹60 lakh in the bank, that is 7.5 months of runway. If revenue rises to ₹6 lakh, net burn falls to ₹6 lakh and runway extends to 10 months.
Track it monthly
Look at the trend and the biggest cost lines. Rising burn without matching growth is an early warning.
