# 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.