# Burn Rate Analyzer MCP > Burn Rate Analyzer diagnoses a startup’s financial health. It calculates your monthly burn rate, breaks down where every dollar goes across categories like salaries and marketing, and forecasts exactly how many months of operation you have left based on current cash reserves. ## Overview - **Category:** finance - **Price:** Free - **Tags:** burn-rate, financial-analysis, runway, startup-metrics, expense-tracking ## Description Every founder needs to know if they can afford the next quarter—and more. This MCP acts as a financial diagnostic tool for early-stage companies. Instead of staring at confusing spreadsheets, your agent handles the heavy lifting. You feed it your expense data and cash reserves; it spits out actionable metrics. You'll immediately see exactly how much you spend monthly and whether that spending aligns with industry norms for your current funding stage. If things look tight, you can determine your operational runway in months. This whole process is available through the Vinkius catalog, giving you a single place to manage critical startup financials. ## Tools ### compare_stage_benchmarks Checks your company's spending against typical industry benchmarks for different startup funding stages. ### analyze_expense_composition Breaks down all expenses into categories and calculates efficiency ratios across those groups. ### calculate_runway_forecast Determines the number of months your company can operate with current cash reserves and burn rate. ## Prompt Examples **Prompt:** ``` Analyze my expenses: salaries 50000, marketing 20000, infrastructure 10000. My revenue is 30000 and I have 5 employees. ``` **Response:** ``` The analysis shows a total burn of 80,000. Your burn per employee is 16,000, and your burn per revenue dollar is 2.67. ``` **Prompt:** ``` How much runway do I have left with 500,000 in reserves and a monthly burn of 40,000? ``` **Response:** ``` Based on your current cash reserves and burn rate, you have approximately 12.5 months of runway remaining. ``` **Prompt:** ``` Compare my current composition (salaries: 0.7, marketing: 0.2, infrastructure: 0.1) against the Seed stage benchmark. ``` **Response:** ``` The comparison shows your spending is on track for a Seed stage startup with no significant deviations detected. ``` ## Capabilities ### Break down all operating costs The tool analyzes spending across salary, infrastructure, and marketing categories, generating detailed efficiency ratios. ### Benchmark current spending It compares your company's spending profile against established industry standards for Seed, Series A, or Series B funding stages. ### Forecast operational runway You tell it your remaining cash and burn rate; it calculates the exact number of months you have left to operate. ## Use Cases ### Board meeting prep after a bad quarter The CFO needs to prove that the company's spending is justifiable. They feed in all costs, use `analyze_expense_composition` to pinpoint high overhead areas, and then run `compare_stage_benchmarks` to show the board they are within industry norms. ### Pitching for a follow-on round of funding The founder needs to convince investors that their spending is controlled. They use `calculate_runway_forecast` first, then back it up by showing how disciplined they are using the comparison tools. ### Deciding on a new marketing spend The marketing team wants to know if another $50k campaign is worth it. They run an expense analysis and use `calculate_runway_forecast` to see that they can't afford the risk right now, forcing a budget review. ### Rapidly assessing post-acquisition spending The ops manager just merged with another company. They must quickly understand if the combined overhead is too high. They run `analyze_expense_composition` to identify immediate areas of waste or overlap. ## Benefits - Identify spending problems before they get critical. Use `analyze_expense_composition` to see if your salary costs are disproportionately high compared to marketing spend. - Stay ahead of investor questions. Run a comparison using `compare_stage_benchmarks` so you know your current burn profile meets the standards for Series A funding. - Stop guessing about cash flow. The `calculate_runway_forecast` tool gives you a hard number—the months remaining—so you can plan real milestones, not just hopeful ones. - Understand efficiency ratios instantly. Don't waste time calculating if your burn per revenue dollar is acceptable; the analysis handles it for you. - Plan growth with confidence. Knowing your runway helps Ops Managers schedule hires and major expenditures without running into a cash wall unexpectedly. ## How It Works The bottom line is that it turns raw expense numbers into a simple timeline for the company's financial viability. 1. Input all necessary financial data, including current cash reserves, total monthly expenses (the burn), and specific spending details. 2. Select the analysis type: Are you checking industry compliance, breaking down costs, or just forecasting survival time? 3. Receive a clear report showing efficiency ratios, benchmark deviations, or your precise months of runway remaining. ## Frequently Asked Questions **How does Burn Rate Analyzer help me if I just need to know my total monthly expenses?** While it gives you a total, running `analyze_expense_composition` is better. It doesn't just give a number; it breaks down the spending by category (like salaries or marketing), telling you *where* the money went. **Can I use compare_stage_benchmarks to check if my company needs more funding?** It helps you assess your current spending relative to industry standards. If the comparison flags significant deviations, it's a strong signal that either your spending is inefficient or you need to adjust your strategy before the next round. **What inputs does calculate_runway_forecast require?** You must provide two key numbers: your current total cash reserves and your calculated monthly burn rate. This gives it enough data to accurately predict how many months of operation you have left. **Is Burn Rate Analyzer only for pre-seed companies?** No. It's designed for any stage. You use `compare_stage_benchmarks` and the tool will adjust its evaluation based on whether your company is Seed, Series A, or something else. **What format does analyze_expense_composition need for optimal results?** It requires a clear breakdown of costs, ideally listing categories and their associated dollar amounts. Providing raw numbers rather than percentages ensures the most accurate efficiency ratios. **How do I use calculate_runway_forecast if my company has zero revenue?** The forecast calculates runway based on net burn (expenses minus revenue). If revenue is zero, the tool simply uses your total monthly expenditure to determine the remaining operational period. **Are there rate limits when running multiple compare_stage_benchmarks checks?** Yes, repeated calls within a short time frame may hit usage limits. We recommend batching related benchmark comparisons or waiting 60 seconds between analyses to maintain stable performance. **Does this MCP support multiple currencies for calculate_runway_forecast?** The tool currently requires all inputs—cash reserves, monthly burn rate, and expenses—to be denominated in a single currency (USD). You must convert everything before running the forecast. **What metrics can I calculate with this MCP?** You can calculate expense composition by category, burn per employee, burn per dollar of revenue, and estimated months of runway remaining. **How does the benchmarking feature work?** The `compare_stage_benchmarks` tool compares your current expense percentages against industry standard benchmarks for Seed, Series A, and Series B stages. **Can I track specific expense categories?** Yes, the analyzer tracks salaries, infrastructure, marketing, legal, and office expenses.