Capital
Burn Multiple Calculator
How much cash you burn for every $1 of new recurring revenue you add. The lower the number, the more efficient your growth.
Inputs
- Net cash burned (period) — Total cash you spent beyond what came in.
- Net new ARR added (period) — New annual recurring revenue gained, minus what churned.
How to use this calculator
- Enter the net cash you burned in a period and the net new ARR you added in it.
- The multiple is dollars burned per dollar of new recurring revenue.
- Under 1× is excellent; over 2× means growth is expensive and efficiency needs work.
What each term means
- Burn multiple
- Net cash burned divided by net new ARR: a capital-efficiency gauge.
- Net new ARR
- New plus expansion minus churned annual recurring revenue.
- Capital efficiency
- How much growth you get per dollar of cash consumed.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.