Monthly Cash Burn Rate Calculation Form
Monthly Cash Burn Rate Calculation Form
This Monthly Cash Burn Rate Calculation Form is crafted to enable [Your Company Name] to accurately determine its monthly cash burn rate, an essential metric for understanding how quickly your startup spends its cash reserves. Completing this form will provide valuable insights into your financial runway and help in making strategic decisions to ensure sustainability.
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Name: |
[Your Name] |
|---|---|
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Company: |
[Your Company Name] |
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Monthly Expenses: |
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Monthly Revenue: |
Operating Expenses
Objective: To capture all monthly operating expenses, which include fixed and variable costs associated with running your business.
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Expense Category |
Amount ($) |
|---|---|
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Salaries and Wages |
20,000 |
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Rent |
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Utilities |
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Marketing |
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Miscellaneous |
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Total Operating Expenses |
Cost of Goods Sold (COGS)
Objective: To document the direct costs attributable to the production of the goods sold by your company.
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Item |
Amount ($) |
|---|---|
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Raw Materials |
5,000 |
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Direct Labor |
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Manufacturing Overheads |
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Total COGS |
Capital Expenditures
Objective: To list outlays for assets that improve your business's future benefits, not accounted for in monthly operating expenses.
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Asset Purchase |
Amount ($) |
|---|---|
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Equipment |
10,000 |
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Software |
|
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Total Capital Expenditures |
Revenue
Objective: To record all sources of income within the month, providing a counterbalance to the expenditures.
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Revenue Source |
Amount ($) |
|---|---|
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Product Sales |
30,000 |
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Service Fees |
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Total Revenue |
Cash Burn Rate Calculation
Objective: To compute the monthly cash burn rate by considering the total expenditures against total revenue.
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Description |
Amount ($) |
|---|---|
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Total Monthly Expenditures (Operating Expenses + COGS + Capital Expenditures) |
58,500 |
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Total Monthly Revenue |
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Monthly Cash Burn Rate (Total Expenditures - Total Revenue) |
Instructions for Completion:
Please ensure that all figures are accurately recorded in their respective sections. The Monthly Cash Burn Rate Calculation Form is pivotal for assessing your startup's financial health and planning for future cash flow needs. Regular monitoring and updating of this form will assist in strategic financial planning and management.
