What You're Really Spending Each Month
Burn rate measures how quickly a company is using cash. The key split is gross burn, your total monthly cash outflow, versus net burn, the monthly cash loss after inflows. Burn rate is also what you use to estimate runway, so getting it right matters.
On this page
- Gross burn is total monthly cash outflow; net burn is the loss after inflows.
- Founders routinely underestimate how fast cash disappears.
- Burn rate is the input that determines runway.
- Track burn in context, not as a one-off calculation.
What this means
Founders underestimate the speed at which cash disappears. Burn rate makes that speed concrete, and it comes in two forms.
Gross burn: Total monthly cash outflow, regardless of any money coming in.
Net burn: Monthly cash loss after inflows, the rate at which your bank balance actually falls.
Spreadsheet limitations
| Feature | Startup Suitein context | A spreadsheetthe manual way |
|---|---|---|
| Monitoring | Burn stays in operating context | Burn can be calculated manually |
| Timing | Real operating visibility | Easy to miss timing changes |
- Monitoring
- Burn stays in operating context
- Timing
- Real operating visibility
- Monitoring
- Burn can be calculated manually
- Timing
- Easy to miss timing changes
Consultant limitations
| Feature | Startup Suiteconstant | A consultantadvisory |
|---|---|---|
| Best for | Constant tracking | Interpreting burn trends |
| As a view | A living workspace | Less useful as a weekly operational view |
- Best for
- Constant tracking
- As a view
- A living workspace
- Best for
- Interpreting burn trends
- As a view
- Less useful as a weekly operational view
How Startup Suite helps
Startup Suite keeps burn connected to cash and runway, which is the whole point. A burn number on its own is trivia; a burn number tied to how many months you have left is a decision tool.
Forecast Engine: burn tied to runway
- See gross and net burn next to your cash balance.
- Watch how a spending change moves the runway.
- Catch burn creep before it shortens your timeline.
A practical founder example
If cash outflow is 45,000 dollars and cash inflow is 19,000 dollars, net burn is 45,000 minus 19,000, which is 26,000 dollars per month. That single number, paired with your cash balance, tells you how long you have.
Watch the 60-second summary
What you spend each month
Frequently asked questions
Is burn rate the same as runway?
No. Burn rate is the monthly cash loss; runway is how long your cash lasts at that burn.
Should I track gross or net burn?
Both. Gross burn shows total spend; net burn shows the real rate your balance falls.
How often should I check burn?
Often. Burn shifts with hiring, collections, and one-off costs, so a stale number misleads.
Still have questions? Talk to the team.
