This Series A Burn Calculator separates gross burn from net burn and shows how strongly recurring cash revenue offsets operating spending. It is intended for companies tracking capital efficiency after a financing round.
Use consistent monthly cash figures. Gross burn describes total operating cash outflow, while net burn measures the amount by which expenses exceed cash revenue. The calculator also reports a burn multiple using net new annual recurring revenue, a common efficiency lens for recurring-revenue businesses.
1. Enter operating outflow
Use average monthly cash expenses for the selected period.
2. Enter cash revenue
Use average monthly cash collected from customers.
3. Add net new ARR
For a recurring-revenue business, enter annual recurring revenue added net of churn.
4. Set the period
Use the same period represented by the averages and ARR addition.
5. Compare efficiency
Review net burn, revenue coverage, and burn multiple together.
The burn multiple is most meaningful when net new ARR and cumulative net burn cover the same period. If net burn is negative, the business is generating cash at the entered run rate.
Net burn shows the average cash consumed each month after customer cash receipts.
The burn multiple is a directional SaaS efficiency metric and is not a substitute for a full cash-flow statement.
Given
Calculation
Net burn = $1,300,000 - $900,000 = $400,000 per month. Annual net burn = $4,800,000. Burn multiple = $4,800,000 / $2,400,000 = 2.00x.
Result
Net burn = $400,000 per month; burn multiple = 2.00x.
The company spent two dollars of net cash burn for each dollar of net new ARR during the period.
In this calculator, gross burn is operating cash outflow. Noncash accounting expenses should be excluded unless they also create a cash payment.
Yes. Negative net burn means cash revenue is greater than operating cash expenses for the entered run rate.
Use cash collected for the burn calculation. Use net new ARR only for the separate burn-multiple result.
The burn multiple is shown as not available because dividing by zero would not produce a meaningful value.
Burn measures the speed of cash consumption. Runway divides usable cash by that burn rate to estimate remaining time.