Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Burn multiple
1.50
Average monthly burn
$150,000
Months of runway
30.0
ARR remaining cash can buy at this efficiency
$3,000,000
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Got your number — what next?
Pick one, it takes 20 secondsHow to use this
- 1Enter net cash burned in period ($).
- 2Enter net new arr added in period ($).
- 3Enter length of period (months).
- 4Enter cash remaining ($).
- 5Read your burn multiple on the right — it updates as you type.
- 6Hit Share to keep the scenario or send it to someone.
About this calculator
Burn multiple divides net cash burned by net new ARR added over the same period, and it's the cleanest single read on capital efficiency because it captures everything — product spend, go-to-market waste, churn, pricing power — in one ratio. Under 1x is exceptional, 1-1.5x is great, 1.5-2x is good, 2-3x is suspect, and above 3x usually means the business is buying growth it can't sustain. This calculator returns the multiple, the implied months of runway at your current burn, and how much ARR your remaining cash can buy at the current rate of efficiency.
Worked example
Using the values the calculator loads with:
Inputs
- Net cash burned in period: 1800000 $
- Net new ARR added in period: 1200000 $
- Length of period: 12 months
- Cash remaining: 4500000 $
Results
- Burn multiple: 1.5
- Average monthly burn: $150,000.00
- Months of runway: 30
- ARR remaining cash can buy at this efficiency: $3,000,000.00
What each field means
Inputs
- Net cash burned in period ($)
- The net cash burned in period used in the calculation, measured in $. Starts at 1800000 $ so you have a working example on load.
- Net new ARR added in period ($)
- The net new arr added in period used in the calculation, measured in $. Starts at 1200000 $ so you have a working example on load.
- Length of period (months)
- The length of period used in the calculation, measured in months. Starts at 12 months so you have a working example on load.
- Cash remaining ($)
- The cash remaining used in the calculation, measured in $. Starts at 4500000 $ so you have a working example on load.
Results
- Burn multiple
- Returned as a decimal number and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Average monthly burn
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Months of runway
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- ARR remaining cash can buy at this efficiency
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why is burn multiple better than CAC?
CAC only looks at sales and marketing on new logos. Burn multiple includes R&D, support, churn, and everything else, so it can't be flattered by shifting costs between departments — which is exactly why investors moved toward it.
What multiple should I target by stage?
Seed-stage companies often run 2-3x and that's tolerated; Series B onward, investors expect under 2x, and best-in-class is under 1x. The direction of travel matters as much as the level — a multiple improving quarter over quarter tells a better story than a flat good one.
Does net new ARR include churn?
Yes — it should be net of churn and downgrades, including expansion. Using gross new ARR makes a leaky business look efficient, which defeats the purpose of the metric.
How do I improve it fastest?
Retention usually moves it more than acquisition. Cutting gross churn from 2% to 1% monthly on a $5M base adds roughly $600k of net new ARR a year with no extra burn, which mechanically improves the multiple.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
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Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Burn Multiple Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/saas-burn-multiple
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/saas-burn-multiple" target="_blank" rel="noopener">Burn Multiple Calculator — RevenueLab</a> (2026).</p>
Source: [Burn Multiple Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/saas-burn-multiple) (2026).