Burn Rate & Runway

Burn rate is how much cash a company spends beyond what it earns each month; runway is how many months of cash remain at the current burn rate.

"Gross burn" is total cash spent per month; "net burn" subtracts revenue coming in, giving the actual cash-out-the-door number. Runway is a moving target, not a fixed date — it shortens if burn increases or revenue growth slows, and extends if the business improves unit economics or raises fresh capital.