Burn Rate Calculator
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By Finance TeamDec 28, 2025
The Burn Rate Calculator is your survival compass. While the main Calanar dashboard tracks your historical burn automatically via bank connections, this calculator allows you to model future scenarios.
Concepts: Gross vs. Net Burn
To use the calculator effectively, you need to distinguish between these two numbers:
- Gross Burn: The total amount of cash leaving your bank account each month (Salaries + Rent + Ads + Servers).
- Net Burn: Gross Burn minus your incoming Revenue. This is the amount of cash you actually lose each month.
💡 Pro Tip
Rule of Thumb: If you are pre-revenue, Gross Burn and Net Burn are the same. If you are generating revenue, Net Burn is the metric that determines your true runway.
Using the Simulator
- Navigate to Models > Financial Health > Burn Rate.
- Current Cash: Input your total available cash balance.
- Monthly Expenses: Use the sliders to adjust your projected monthly spend.
- Revenue Offset: Input your expected monthly recurring revenue (MRR).
The Output: "Zero Cash Date"
The simulator visualizes your "Zero Cash Date"—the exact calendar day you will run out of money if nothing changes.
- Green Zone: 18+ months of runway.
- Yellow Zone: 6-12 months (Time to start fundraising preparation).
- Red Zone: < 6 months (Immediate cost-cutting required).
The "Efficiency Score"
Calanar also assigns you a Burn Efficiency Score based on the Bessemer Efficiency Benchmark:
- Score > 1.5x: You are burning too much relative to your ARR growth.
- Score < 1x: You are growing efficiently.