Burn rate is the speed at which your business spends cash each month before becoming profitable. Gross burn is total monthly spending. Net burn subtracts any revenue, showing how fast your cash reserves are shrinking.

How do you calculate runway from burn rate?

Divide your current cash balance by your monthly net burn rate. If you have $120,000 in the bank and burn $10,000 per month net, your runway is 12 months.

What is a healthy burn rate for a startup?

There is no single number, but most advisors recommend maintaining at least 12-18 months of runway. If your runway drops below 6 months, it is time to cut costs or raise capital.

What is the difference between gross burn and net burn?

Gross burn is your total monthly expenses, regardless of income. Net burn subtracts revenue from expenses. A company spending $50,000/month with $20,000 in revenue has a gross burn of $50,000 and a net burn of $30,000.

Burn rate is the monthly rate at which your business spends cash beyond what it brings in. Divide your total cash reserves by your monthly burn rate to calculate runway, the number of months before you run out of money. A burn rate above 15-20% of monthly revenue is a warning sign for most small businesses outside of an intentional growth phase.

Burn Rate & Runway Calculator for Catering

Pre-filled with real catering industry benchmarks

Burn Rate & Runway Calculator

Pre-filled with catering industry defaults. Edit any field to use your real numbers.

Ready to use your real numbers?

Create a free account to save your calculations, track changes over time, and get tailored insights for your catering business.

More Calculators for Catering Businesses

Burn Rate & Runway Calculator for Other Industries

🍽️Restaurant 🏪Retail 🔨Construction 🌿Landscaping 🛒E-commerce 💼Consulting ✂️Salon 🧹Cleaning Service 🚚Food Truck 🏢Franchise 🏡Single-Family 🏘️Duplex 🏢Multi-Family 🛏️Airbnb / Short-Term Rental 🏋️Fitness / Gym 🐾Pet Services 👶Childcare 🔧Auto Repair Real Estate 🏠Real Estate Investing Manufacturing Professional Services 🔧Home Services SaaS Healthcare Dental ❄️HVAC 🚛Trucking 🔧Plumbing ⚡Electrical 🐛Pest Control 🏗️Roofing 🎨Painting 📊Accounting Firm ⚖️Law Firm 📣Marketing Agency 🛡️Insurance Agency 🧁Bakery ☕Coffee Shop 🍺Bar / Brewery 👶Daycare 🦷Dental Practice 🏥Medical Practice 🐕Veterinary Practice 📸Photography 💐Wedding & Events 🚗Car Wash 👕Laundromat 📚Tutoring 📦Moving Company 🌸Florist ✒️Tattoo Studio 💈Barbershop 💦Pressure Washing 🌳Tree Service Consulting Consulting

Burn Rate and Runway: The Numbers Every Founder Needs to Know How Much Does It Cost to Start a Business? A Realistic Breakdown 5 Cash Flow Mistakes That Kill Small Businesses Cash Flow Forecasting 101: A Small Business Owner's Guide How to Build a 3-Month Cash Reserve for Your Business When Should I Quit My Job for My Side Hustle? The Math Behind the Decision

Use the general Burn Rate & Runway Calculator (no industry pre-fill)

This calculator is part of the Cash Flow Command Center. See all cash flow tools including forecasting, budget builder, and automated cash flow alerts.

Burn Rate & Runway Calculator for Catering

Burn Rate & Runway Calculator

Ready to use your real numbers?

More Calculators for Catering Businesses

Burn Rate & Runway Calculator for Other Industries

Related Articles