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Burn rate is the speed at which a startup or business spends its cash reserves. Gross burn is total monthly spending; net burn is spending minus revenue. Runway = Cash reserves ÷ Net burn rate.

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1. 1Add up all monthly outgoings (salaries, rent, servers, marketing, etc.) — this is gross burn
2. 2Subtract monthly revenue — this gives net burn rate
3. 3Divide remaining cash by net burn to find runway in months

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