How to Calculate Your Burn Rate in 5 Minutes — No Spreadsheet Needed

Most founders know they should be tracking their burn rate. Very few actually do it. Not because they're irresponsible, but because every guide they find makes it sound like a CFO-level exercise involving spreadsheets, formulas, and an MBA. It isn't. Learning how to calculate burn rate takes about five minutes. Once you know your number, everything about running your business gets clearer. How long you can operate. Whether you can afford to hire. How close you are to needing revenue. Here's how to do it. No spreadsheet required. What Is Burn Rate? Burn rate is the speed at which your business is spending money. It tells you how much cash you're going through every month, and by extension, how long you have before you run out. There are two versions of burn rate that matter. Gross burn rate is your total monthly expenses: everything you spend, regardless of what you earn. Payroll, software subscriptions, office costs, ad spend. All of it. Net burn rate is what most founders actually car