Business
Burn Rate Calculator
Calculate average monthly cash burn from a decline in cash balance over a period.
- Free to use
- Runs in your browser
- Level B · Industry formula
- Last reviewed 2026-08-16
Calculator guide
How to use the Burn Rate Calculator
Calculate average monthly cash burn from a decline in cash balance over a period. Enter the requested values and select Calculate. The result and supporting values are produced locally in your browser.
Formula
Worked example
If cash falls from $750,000 to $510,000 over 6 months, average monthly burn is $40,000.
What to keep in mind
- A negative result means cash increased over the measured period rather than being burned.
- Average burn can hide month-to-month volatility and one-time cash flows.
Methodology
This calculator uses deterministic arithmetic and performs the calculation locally in your browser. Verify assumptions, units, and source values for your specific use case.
Review standard: Level B · Industry formula. How calculator reviews work.
Frequently asked questions
What does this calculator calculate?
Calculate average monthly cash burn from a decline in cash balance over a period.
How is the result calculated?
Monthly Burn Rate = (Starting Cash − Ending Cash) ÷ Number of Months.
Can I use the result for an important decision?
Use the result as a calculation aid and verify the inputs, assumptions, and applicable professional or regulatory requirements before relying on it for an important decision.
Does CalculateMeasure store the values I enter?
The calculator performs its arithmetic in your browser. The calculator itself does not need to send your entered values to a server to produce the result.