Understanding Your Monthly Burn Rate
For startups and small businesses, **Operating Costs (OPEX)** are the lifeblood of the company. Knowing your "burn rate" — the amount of money you spend each month — is critical for making decisions about hiring, expansion, and finding new investment.
Runway Length
Divide your cash in bank by your monthly burn to see how many months you can survive.
Pricing strategy
Ensure your revenue per customer (ARPU) is high enough to cover these recurring costs.
Tax Efficiency
Most operating expenses are 100% tax-deductible as business costs.
Common Monthly Business Expenses
Human Capital (The #1 Cost)
Salaries, contractor fees, employee benefits, and payroll taxes.
Marketing & Acquisition
Ad spend (Google, Meta), SEO tools, content creators, and lead gen services.
SaaS & Infrastructure
CRM, hosting, email marketing tools, productivity suites (Google Workspace/Office 365).
Professional Tip: The "Rule of 40"For SaaS businesses, a healthy company's growth rate plus its profit margin should equal or exceed 40%. Tracking your operating costs accurately is the only way to measure this metric properly.