Capital Velocity & Efficiency Metric
Burn Rate Calculator
Measure your monthly cash burn velocity. Compare gross burn against net burn, calculate annualized loss rates, and benchmark your venture Burn Multiple.
Burn Rate & Efficiency Inputs
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$
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Used by top venture funds (Bessemer/Craft) to benchmark capital efficiency ($Net Burn ÷ Net New ARR$).
Net Monthly Burn$30,000Cash drained per month
Gross Monthly Burn$45,000Total monthly expenses
Cash Burn Velocity12% cash / month
Implied Runway8.3 months
Annualized Net Burn$360,000/yr
SaaS Burn Multiple: 2x
Rating: FairYou spend $2 to generate $1.00 of new ARR.
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Burn Rate Frequently Asked Questions
Everything you need to know about cash runway, burn rates, and financial planning.
Gross Burn is the total absolute amount of cash spent by the business each month (payroll, rent, vendors). Net Burn is Gross Burn minus total monthly cash revenue. If you spend $50,000 and earn $20,000, your Gross Burn is $50,000 and Net Burn is $30,000.