Analyze SaaS burn rate by comparing expenses, revenue, net new ARR, and cash. This calculator estimates gross burn, net burn, burn multiple, and capital efficiency health.
The result shows how efficiently the company converts cash burn into new ARR. A lower burn multiple generally signals better capital efficiency and a stronger fundraising profile.
Burn multiple should be interpreted with growth stage, gross margin, sales cycle, and market conditions. Very early companies may have noisier results.
If monthly expenses are $240,000 and revenue is $140,000, net burn is $100,000. With $600,000 net new ARR, burn multiple is 2.0x.
A healthier burn multiple is generally lower, but the benchmark depends on company stage, growth rate, and fundraising environment.
Investors compare burn against ARR growth, retention, gross margin, runway, and the milestones the company can reach before the next financing.
Gross burn is total monthly cash spent. Net burn subtracts monthly revenue from expenses to show the cash gap.
Improve sales efficiency, reduce low-return spending, delay nonessential hiring, increase pricing discipline, and protect high-retention customer segments.
ARR growth improves burn efficiency when new recurring revenue rises faster than operating losses and acquisition costs.
| Module | What it shows |
|---|---|
| Gross Burn | Total monthly operating expense. |
| Net Burn | Monthly cash loss after revenue. |
| Burn Multiple | Cash burned per dollar of net new ARR. |
| Capital Efficiency | Health score from burn and ARR growth. |