How to use this calculator
Enter payroll, operating expenses, marketing spend, and monthly revenue.
The calculator separates gross burn from net burn and estimates burn multiple to evaluate spending efficiency.
#939 · Startup Tool
Pre Seed Burn Calculator
Calculate pre-seed gross burn, net burn, and burn efficiency from payroll, operating expenses, marketing spend, and revenue. Use it to understand how quickly cash is being consumed.
Calculator
Startup inputsUSD
USD
USD
USD
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What the result means
Net burn is the monthly cash loss after revenue. Burn multiple shows how much cash is burned for each dollar of revenue and is useful for early efficiency analysis.
Gross Burn = Payroll + Operating Expenses + Marketing Spend; Net Burn = Gross Burn − Monthly Revenue; Burn Multiple = Net Burn ÷ Monthly Revenue.
A burn multiple below 1 is excellent, 1 to 2 is good, 2 to 3 is average, and above 3 indicates high capital intensity.
Example calculation
With $55,000 payroll, $18,000 operating expenses, $12,000 marketing spend, and $18,000 revenue, gross burn is $85,000 and net burn is $67,000.
Tips for better results
- Separate fixed payroll burn from flexible marketing burn.
- Track burn multiple as revenue grows.
- Cut low-return spend before cutting core product capacity.
- Compare actual burn with the board-approved budget monthly.
FAQ
How do I calculate monthly burn rate for a pre-seed startup?
Add payroll, operating expenses, and marketing spend to get gross burn, then subtract monthly revenue to get net burn.
What is the difference between gross burn and net burn?
Gross burn is total monthly spending. Net burn is spending after subtracting monthly revenue.
What burn multiple is good for an early stage startup?
A burn multiple below 1 is very efficient, 1 to 2 is generally good, and above 3 may indicate inefficient growth.
Should founder salaries be included in startup burn rate?
Yes. Any recurring payroll cost, including founder salaries, should be included when calculating burn rate.
How can I reduce startup burn without hurting growth?
Review nonessential tools, renegotiate vendors, focus marketing on proven channels, and delay hires that are not tied to the next milestone.
Related calculators
Startup metric table
| Metric | Meaning |
|---|---|
| Primary metric | Net Burn |
| Decision use | Use this result to judge startup health, investor readiness, and next operating priorities. |
| Benchmark | A burn multiple below 1 is excellent, 1 to 2 is good, 2 to 3 is average, and above 3 indicates high capital intensity. |
| Recommendation | Improve the weakest driver before scaling spend or fundraising assumptions. |
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