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About This Calculator
Calculate startup monthly gross burn, net burn rate, cash reserves, hiring growth impact, and zero-cash date runway in months for venture founders.
Frequently Asked Questions
What is the difference between gross burn and net burn?
Gross burn is the total cash spent each month on operations (salaries, rent, cloud servers) regardless of revenue. Net burn is gross burn minus incoming cash revenue, representing the true rate at which cash reserves decline.
How much runway should a seed or Series A startup maintain?
Venture capitalists recommend maintaining at least 18 to 24 months of cash runway. Because closing a venture financing round typically requires 4 to 6 months of diligence, founders should begin active fundraising when they have 9 to 12 months of runway remaining.
What does Paul Graham mean by 'Default Alive'?
A startup is 'Default Alive' if, assuming current revenue growth and expenses remain constant, it will reach cash flow profitability before running out of money. If it will exhaust cash before profitability without new external funding, it is 'Default Dead'.
What is fully loaded employee cost?
Fully loaded cost includes an employee's base salary plus mandatory employer payroll taxes (FICA), healthcare benefits, 401(k) matches, software licenses, and equipment, typically adding 20% to 30% on top of gross salary.