Startup · Free tool
Burn Multiple Calculator
How much cash is the company burning to add each dollar of new revenue? The burn multiple answers that in one number, and investors increasingly ask for it alongside growth. This calculator divides net burn by net new revenue for any period you choose. It is for founders, CFOs, and finance leads at venture-backed or growing companies.
- OutputBurn multiple
- No sign-up
- Copy or print the result
- How it works ↓
Your entries stay in this browser. Use Fill example to see a finished page first.
What this startup tool gives you
You see the burn multiple next to the net burn and net new revenue you entered, formatted in your currency. Put it on the finance slide of a board deck, or track it quarter by quarter to show whether growth is getting more or less efficient.
What you enter
- Currency: USD, EUR, or GBP
- Net burn for the period: cash out minus cash in
- Net new revenue for the same period
Worked example
In the example, net burn is USD 80,000 and net new revenue is USD 40,000. The burn multiple is 80,000 ÷ 40,000 = 2. In other words, the company burned two dollars of cash for every dollar of new revenue it added in that period. The result panel shows the multiple of 2 with the two inputs as $80,000 and $40,000.
How is the burn multiple calculated?
Burn multiple = net burn ÷ net new revenue, rounded to two decimals. Both fields are required. If net new revenue is zero, the tool stops with a warning, because the multiple has no divisor.
A lower multiple means less burn per unit of new revenue. The tool does not grade the result or compare it to benchmarks, and it labels the figure a sketch, not investment advice. Use the same period for both inputs, for example one quarter of burn against the revenue added in that quarter.
Tips before you use the result
- Match the periods. Quarterly burn divided by a single month of new revenue will overstate the multiple threefold.
- Decide once whether net new revenue means new annual recurring revenue or new period revenue, and keep that definition every quarter.
- Net new revenue should be net of churn and contraction. Using only new sales makes the multiple look better than it is.
- Track the trend across several periods; one quarter with a large deal can distort the number.
Frequently asked questions
What is a good burn multiple?
The calculator does not label a number as good or bad. What it tells you is direction: a lower multiple means less cash burned per unit of new revenue. Compare your figure with your own previous quarters and with the thresholds your investors use, since expectations vary by stage and market.
What does a burn multiple of 2 mean?
It means the company burned two units of cash for each unit of net new revenue in the period. With USD 80,000 of net burn and USD 40,000 of net new revenue, the multiple is exactly 2. Halving the burn at the same revenue, or doubling the new revenue at the same burn, would bring it to 1.
What if my net new revenue is zero or negative?
If it is zero, the calculator shows a warning, since dividing by zero has no answer. A negative figure, when churn outweighs new revenue, is still divided and gives a negative multiple, which signals that the business shrank while burning cash.
Is the burn multiple investment advice?
No. The tool describes the result as a sketch, not investment advice. It performs one division on the figures you enter and does not assess the company, its valuation, or whether to invest. Nothing is saved to a server, and there is no sign-up.
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