SaaS metrics · Capital efficiency

Burn Multiple Calculator

Measure how much cash the business used to create each dollar of net new annual recurring revenue.

Cash and ARR inputs

CurrencyCash at period startCash at period endARR at period startARR at period endPeriod length (months)Target Burn Multiple

Use cash and ARR measured over the same period. Exclude financing inflows from operating cash movement.

Capital efficiency results

Burn Multiple—

Efficiency band—

Net cash burn—

Net new ARR—

Average monthly burn—

Cash runway—

Target burn limit—

Burn reduction needed—

How Burn Multiple is calculated

Net cash burn ÷ net new ARR equals Burn Multiple. A lower positive number means the company used less cash to create recurring revenue.

This tool labels 1.0 or below as highly efficient, 1.01–1.5 as efficient, 1.51–2.0 as moderate, and above 2.0 as high burn. Stage, margin and investment timing can materially change interpretation.