Sjo

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How fast are you burning cash?

Enter your cash, monthly revenue and monthly expenses. See gross and net burn, how many months you have left, and whether your growth gets you to profitable before the money runs out.

Gross burn$22,000spent per month
Net burn$14,000expenses minus revenue
RunwayNever runs out11 months if growth stops
Default alive?Yesprofitable in month 19

Sjo · AI executive

You're default alive. What would you do with the margin?

Sjo takes your real numbers, checks every option against your runway rules (cut, raise prices, hire later, raise money) and tells you which call it would make and why.

Free Sjo shows you what's happening. Paid Sjo helps you decide what to do about it.

How burn rate is calculated

Gross burn
total monthly expenses
Net burn
monthly expenses − monthly revenue
Runway
cash in the bank ÷ net burn

Gross burn vs net burn

Gross burn is everything you spend in a month. Net burn is what you actually lose once revenue comes in. Net burn is the number that decides runway, so it is the one investors ask for. Gross burn tells you how much you would need to cut if revenue stopped.

What does default alive mean?

A company is default alive if, with expenses held flat and revenue growing at its current rate, it becomes profitable before the cash runs out. If not, it is default dead: it needs to raise money, cut costs or grow faster to survive.

This calculator holds expenses flat and compounds revenue by your monthly growth rate, month by month, for up to ten years. Set growth to 0 to see plain runway.

What is a good burn rate?

There is no single good number. What matters is runway and what the burn buys. A common rule of thumb is to keep at least 12 to 18 months of runway after raising, and to start fundraising or cutting when you drop below 6 to 9 months, because raising usually takes three to six months.

How do I lower my burn rate?

  • Cancel subscriptions nobody uses and renegotiate the big ones at renewal.
  • Delay hires until a specific bottleneck is costing you revenue.
  • Raise prices for new customers. Revenue growth cuts net burn without cutting anything.
  • Collect unpaid invoices. Money owed to you is runway you have already earned.