Financials

Company Balance

$$

Monthly Revenue (MRR)

$$

MoM Growth

%

Monthly Expenses

Office / Rent

$/mo

Ad Spend

$/mo

Software & Tools

$/mo

Runway Remaining

12 months

Expenses by Category

No expenses to display

What These Numbers Tell You

Burn Rate

Burn rate is how fast you're spending cash each month. There are two versions:

• Gross burn = total monthly expenses (everything going out the door)
• Net burn = expenses minus revenue (your actual cash loss)

Runway

Runway is how many months you can survive at your current burn rate.

What "Good" Burn Rate Looks Like

The metric investors actually care about: Burn multiple (Net Burn ÷ Net New ARR). It shows how efficiently you're turning spending into revenue.

Below 1x

Excellent

1-1.5x

Great

1.5-2x

Acceptable

Above 2x

Trouble

Warning Signs You're Burning Too Fast

Burn multiple above 2x

Runway under 12 months

Gross burn growing faster than revenue

High customer concentration

Stop Burning Cash on Payroll Compliance

Multi-state payroll is a hidden money pit for distributed startups. It adds up fast and pulls founders away from the work that actually matters.

Complete Guide on Burn Rate

Startup Burn Rate Explained: Benchmarks, Runway, and What Investors Expect in 2026
Breakdown of burn rate fundamentals, 2026 runway expectations by stage, the burn multiple metric, and warning signs your startup is spending too fast.

Nicole Sievers · Jan 21, 2026

Questions?

01. What's a healthy burn rate for a seed-stage startup?

Most seed-stage startups burn $50K-$100K monthly, with a median around $75K. But "healthy" depends on your runway—aim for 24-30 months of cash given the extended fundraising timelines in 2025-2026.

02. How do I calculate runway?

Divide your current cash balance by your monthly net burn rate. $500K in the bank with $50K net burn = 10 months of runway.

03. What's the difference between gross and net burn rate?

Gross burn is total monthly spending. Net burn subtracts your revenue. If you spend $100K and make $30K, gross burn is $100K and net burn is $70K.

04. When should I start fundraising based on my runway?

Begin raising with 9-12 months of runway remaining. Never let runway drop below 6 months during an active raise.

05. What's a burn multiple and why does it matter?

Burn multiple = Net Burn ÷ Net New ARR. It shows how efficiently you're converting spending into revenue.