Startup Burn Rate Calculator
Measure monthly gross burn, net burn, annualized cash drain, and the Bessemer Burn Multiple.
Monthly Cash Flow Parameters
Gross burn: All monthly salaries, tools, marketing, server & rent.
Used to compute Bessemer Burn Multiple (Net Burn ÷ Net New ARR).
Annualized: ₹1,44,00,000/yr
Annualized: ₹96,00,000/yr
Indicative benchmark: Every ₹2 of net cash burned generates ₹1 of fresh Annual Recurring Revenue. Heuristic targets vary across seed, growth, and bootstrapped stages.
Based on ₹80,00,000 cash in bank
Burn Formulas & Benchmarks
Gross Burn
Gross Burn = All Monthly Cash Operating Outflows
Net Burn
Net Burn = Monthly Gross Burn - Monthly Cash Inflows
Bessemer Burn Multiple
Burn Multiple = Net Burn ÷ Net New ARR Added
Frequently Asked Questions
What is the difference between Gross Burn and Net Burn?
Gross Burn is your total monthly cash expenditure. Net Burn is total expenditure minus cash inflows (revenue).
What is a good Burn Multiple?
A Burn Multiple (Net Burn ÷ Net New ARR) below 1.0x is exceptional, 1.0x to 1.5x is healthy, while above 2.0x indicates capital inefficiency.
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