QuadraPay — Merchant Services Reseller
Estimation Tool Only. Projections are based on your inputs and assume constant burn. Actual cash positions depend on many real-world variables. Full disclaimer ↓
Tool #14 · Startup Finance

Burn Rate &
Runway Calculator

Calculate your gross burn, net burn, months of cash runway remaining, zero-cash date, and how long before you need to raise — with a 12-month cash balance projection and fundraising timeline.

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Burn Rate & Runway Calculator

Gross burn · Net burn · Runway months · Zero-cash date · Fundraising timeline

$
Total cash and cash equivalents available right now — bank balance, money market, etc.
$
$
$
$
$
Card processing MDR + gateway + chargeback fees.
$
$
Actual cash received per month (not ARR/bookings).
%
Expected month-over-month revenue growth. 0 = flat revenue.
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How much you plan to raise in your next funding round. Leave 0 if not fundraising.
Typically 3–6 months for seed, 4–8 months for Series A.
Cash Runway Remaining
months
Zero-Cash Date
Net Burn Rate
Gross Burn Rate
🛡️ Runway Health Indicator
0 months 6 months 12 months 18+ months
0–6 mo
🚨 Critical — act now
6–12 mo
⚠️ Caution — plan ahead
12–18+ mo
✅ Safe — grow smart
📊 12-Month Cash Balance Projection
Cash remaining Below zero
Gross Burn Rate
Total monthly expenses
Net Burn Rate
Expenses minus revenue
Processing % of Burn
Payment fees share of costs
Current cash balance
Gross burn rate (all expenses)
Monthly revenue (current)
Net burn rate (burn − revenue)
Revenue growth rate
Processing fees / month
Processing fees / year
Cash runway remaining
Zero-cash date (est.)
Months to profitability (est.)
💰 Fundraising Timeline Analysis
Planned raise amount
Time to close fundraise
Must start fundraising by
Cash at fundraise close
Runway after raise
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What This Calculator Does

It calculates your gross burn (total monthly expenses), net burn (expenses minus revenue), cash runway in months, the exact date your cash runs out, months to profitability, and a 12-month cash balance chart — plus a fundraising timeline showing when you must start raising.

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How to Use It

Enter your current bank balance, break out your monthly expenses (including payment processing fees), enter current monthly revenue and expected growth rate. If you plan to raise capital, enter the amount and expected time to close. Hit calculate to see your full runway picture.

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What to Expect

12+ months of runway is considered safe. 6–12 months is caution territory — start planning your next raise or path to profitability now. Under 6 months is critical — immediate action on either cutting burn or accelerating revenue is required. Every month of burn extended is a month more to reach profitability.

Burn Rate & Runway — The Founder's Complete Guide

Burn rate and runway are the two most critical financial metrics for any pre-profitability business. They tell you how quickly you are spending your capital and how long you have before that capital runs out. Every board meeting, investor update, and strategic decision should reference these numbers.

Gross Burn vs Net Burn — Key Definitions

Gross Burn Rate = Total Monthly Cash Expenses (all outflows) Net Burn Rate = Gross Burn − Monthly Revenue Cash Runway (months) = Cash Balance ÷ Net Burn Rate Months to Profitability: At constant revenue growth, solve for N where: Revenue × (1 + Growth%)^N ≥ Gross Burn Fundraise Start Deadline = Runway Months − Time to Close − 2 months buffer

What Investors Look For

  • 18+ months runway — Considered strong. Allows focus on growth without distraction from fundraising.
  • 12–18 months — Acceptable. Should be actively preparing the next raise or a credible path to profitability.
  • 6–12 months — Caution. Should be in active fundraising or implementing burn reduction immediately.
  • Under 6 months — Critical. Raise or revenue acceleration must be the only priority. Many investors avoid companies this close to zero.
  • Net burn as % of revenue — Investors track how efficiently capital converts to revenue growth. Declining net burn as a % of revenue shows improving capital efficiency.

The Fundraising Timing Trap

The most dangerous misconception founders have about fundraising is how long it takes. A seed round typically closes in 3–5 months from first pitch. Series A averages 4–7 months. By the time you feel urgency, it's often too late to raise at good terms. The golden rule: start raising when you have 12+ months of runway remaining — never when you have 6 months or less.

How to Extend Runway Without Cutting Product

  • Reduce payment processing costs — Payment processing fees are often the most negotiable large line item. Switching from 3% to 1.5% on $100K/month extends runway by recovering $1,500/month — roughly 1 extra month of runway per $1,500 in monthly net burn reduction.
  • Switch eligible transactions to eCheck — ACH/eCheck at 0.5–1% vs card at 2.9–5% can save 2–4% of revenue on eligible transactions, directly reducing burn.
  • Renegotiate vendor contracts — Software subscriptions, office leases, and service contracts are often negotiable, especially if you can offer advance payment.
  • Accelerate collections — Invoice factoring or improved payment terms can improve cash position without reducing costs.
  • Focus marketing spend on highest-ROI channels — Cutting 30% of marketing that delivers 5% of leads significantly reduces gross burn with minimal revenue impact.
💡 QuadraPay Tip: QuadraPay is a merchant services reseller with 45+ acquiring partners globally. For startups watching every dollar, reducing your processing rate by 1% on $50K/month is $500/month recovered — nearly a week of extra runway per year. For high-risk businesses paying 4–5%, switching some volume to eCheck at 0.5% can dramatically extend your runway. Get a free rate assessment →

Extend Your Runway via QuadraPay's Network

QuadraPay is a merchant services consultancy and reseller — not a processor. We connect businesses to the right acquiring partner from our global network of 45+ banks across 32 countries, reducing processing costs that burn through your runway every month.

45+
Partners
32
Countries
200+
Industries
8yr+
Since 2016
Lower processing rates reduce monthly burn directly
eCheck/ACH from 0.5% — dramatically lower than card rates
High-risk startup accounts — supplements, gaming, SaaS
Reserve-friendly terms to preserve working capital
Interchange-plus pricing for maximum transparency
Multi-currency acquiring — reduce FX burn

Frequently Asked Questions

What is the difference between gross burn and net burn?
Gross burn is your total monthly cash expenditure — everything you spend. Net burn is gross burn minus your monthly revenue — the actual cash you're losing each month. Net burn is the more important metric for runway calculation because it accounts for the cash coming in. A company with $100K gross burn and $60K revenue has $40K net burn — which is what depletes your cash balance each month.
How much runway should a startup have before raising?
The general rule is to start fundraising when you have 12–18 months of runway remaining. This gives you enough time to run a proper process (3–6 months) without being in a distressed position that signals desperation to investors. Starting a raise with less than 6 months of runway significantly weakens your negotiating position and can force you to accept unfavourable terms — or fail to close at all.
Should payment processing fees be included in burn rate?
Yes, absolutely. Payment processing fees are a real cash outflow that reduces your bank balance every month. They should be included in your gross burn calculation. This is especially important for high-growth businesses where processing fees scale with revenue — as revenue grows, so does the processing cost. Many founders overlook this until it becomes a significant line item. For a business processing $200K/month at 3%, that's $6,000/month in processing fees affecting burn.
How can reducing processing fees extend my runway?
Every dollar you save on processing fees is a dollar that stays in your bank account. If your net burn is $30,000/month and you reduce monthly processing fees by $1,500, you extend your runway by $1,500 ÷ $30,000 = 5% more runway per month. On a $500,000 cash balance, that's roughly 0.85 extra months of runway — just from a processing rate negotiation. QuadraPay's reseller network can often achieve 0.5–2% rate reductions through its 45+ acquiring partners.
Is this runway calculation accurate?
The calculation is mathematically correct based on your inputs, but assumes a consistent burn rate and linear revenue growth — which is rarely how real businesses operate. Seasonal fluctuations, one-off expenses, unexpected churn, or growth spikes all affect actual runway. This tool provides a useful planning estimate, not a guaranteed forecast. Always maintain a detailed, rolling 13-week cash flow model for operational decisions. See the full disclaimer below.