Advertisement

Burn Multiple Calculator

Metrics advanced FOUNDERCFO

Burn Multiple measures capital efficiency by comparing net burn against net new ARR over a period.

Try it with your numbers

Burn Multiple2
Burn multiple = Net Burn / Net New ARR over a time period
Variable Meaning
Net Burn Cash burned net of cash inflows over the period.
Net New ARR over a time period Net new annual recurring revenue added during the period (new + expansion − churned − contraction ARR).

Worked example

Net Burn
$2,000,000
Net New ARR over a time period
$1,000,000
→ Burn Multiple
2

Enable JavaScript to use the interactive calculator.

Advertisement

Burn Multiple Formula

Burn multiple = Net Burn / Net New ARR over a time period
Variable Meaning
Net Burn Cash burned net of cash inflows over the period.
Net New ARR over a time period Net new annual recurring revenue added during the period (new + expansion − churned − contraction ARR).

How to Calculate Burn Multiple

Worked example

Net Burn
$2,000,000
Net New ARR over a time period
$1,000,000
→ Burn Multiple
2

Full definition, benchmarks, and common mistakes live on the Burn Multiple glossary page ; quick answers are in the Burn Multiple FAQ .

Advertisement

Related Concepts