Finicade
🔍 Sign in
Startups & Venture Capital

Burn Rate

Also called: net burn, gross burn, cash burn

Burn rate is how much cash a company consumes per month. Gross burn is total spending; net burn subtracts revenue and is the number that matters. It's the denominator of runway, and the reason startup finance is dominated by one arithmetic exercise: cash in the bank divided by net burn, watched monthly by every founder and board member.

Formula

Net burn = Monthly cash out − Monthly cash in

← All Startups & Venture Capital terms