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SaaS Burn Calculator

The SaaS Burn Calculator measures gross burn, net burn, burn multiple, and the monthly change in cash for a subscription business. It combines operating cash outflows with recurring and other cash inflows, then relates net burn to net new ARR when that growth input is available.

The tool is designed for operating reviews and financing preparation, where a team needs to understand both the absolute amount of cash consumed and the efficiency of that spending. Gross burn shows total operating cash outflow, while net burn reflects the portion not covered by inflows. The burn multiple adds a growth-efficiency perspective but should be interpreted alongside gross margin, sales cycle, and stage of company.

Monthly burn inputs

USD
USD
USD
USD
Result
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Monthly net burn
Gross burn—
Total cash inflows—
Burn multiple—
Annualized net burn—

1. Enter operating cash outflow
Use the monthly cash paid for operations before subtracting revenue collections or other inflows.

2. Enter recurring cash inflow
Record subscription cash receipts expected for the month.

3. Add other operating inflows
Include other recurring operating cash inflows, but exclude financing proceeds.

4. Enter net new ARR
Use the increase in ARR after churn and contraction for the selected period.

5. Select the ARR period
Identify whether the net new ARR figure is monthly, quarterly, or annual so it can be normalized.

6. Review burn and efficiency
Use net burn for cash planning and the burn multiple for a directional growth-efficiency check.

Gross burn = Monthly operating cash outflow
Net burn = Gross burn − Recurring cash inflow − Other cash inflow
Burn multiple = Quarterly net burn ÷ Quarterly net new ARR

The calculator normalizes the entered net new ARR to a quarterly amount. When net new ARR is zero, the burn multiple is not meaningful and is shown as unavailable.

What the result means

The main result is the amount of cash consumed by operations in one month after operating cash inflows.

A single burn multiple should not be treated as a complete measure of company quality or capital efficiency.

Given: $300,000 monthly operating outflow, $180,000 recurring cash inflow, $10,000 other inflow, and $600,000 quarterly net new ARR.

Calculation: Net burn = $300,000 − $180,000 − $10,000 = $110,000 per month. Quarterly net burn = $330,000. Burn multiple = $330,000 ÷ $600,000 = 0.55x.

Result: Monthly net burn is $110,000, with a burn multiple of 0.55x for the entered growth period.

Is gross burn the same as total company expenses?

Not necessarily. Gross burn focuses on cash operating outflows. Noncash accounting expenses and some financing or investing cash flows may be excluded.

Can net burn be negative?

Yes. A negative net burn means operating cash inflows exceed operating cash outflows for the month, producing positive cash generation.

Why normalize to a quarter for burn multiple?

Using a common period prevents a monthly burn figure from being divided directly by an annual growth figure. This calculator converts both components to a quarterly basis.

Should funding proceeds be included as other cash inflow?

No. Financing proceeds can temporarily increase cash but do not represent operating inflow. Keep them separate from burn analysis.

What if net new ARR is zero?

The burn multiple cannot be calculated because the denominator is zero. Review absolute net burn and the reasons growth stalled instead.