Free calculator: burn multiple
Burn multiple calculator
Measure how efficiently your company turns net burn into new recurring revenue, then compare that efficiency with the runway your cash balance supports.
Inputs and formula
- Net burn = max(0, monthly expenses − monthly revenue).
- Burn multiple = net burn ÷ new recurring revenue added in the same period.
- Runway = cash balance ÷ monthly net burn when the business is not cash positive.
Worked example
With $42,000 in monthly expenses, $30,000 in revenue, and $8,000 of new recurring revenue, net burn is $12,000 and the burn multiple is 1.50x.
Planning estimate caveat
Use consistent periods and consider gross margin, collections timing, one-time costs, and revenue quality before using burn multiple as a board or fundraising metric.
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