How do I calculate Burn rate?

Use the formula(s) on this page. Keep inputs consistent by period and basis.

What are good benchmarks?

Benchmarks vary by model and stage. See Benchmarks on this page for ranges.

Inconsistent definitions/time windows; wrong basis (revenue vs gross profit).

Pitchkit

Burn rate

Cash outflow rate. Net burn = cash out - cash in (operational).

Types

Gross burn: total cash out. Net burn: cash out minus cash in.

Benchmarks

Early stage often $50k–$300k/mo depending on team size and GTM; align with milestones.

Worked example

Cash out $280k; Cash in $110k → Net burn $170k for the month.

Common pitfalls

Excluding capex/financing effects incorrectly; averaging volatile months without notes.

How to show in your deck

Financials slide: 6–12 months of net burn trend with major step‑changes annotated.

Deck snippet

Net burn $170k/mo; step‑down with infra optimizations in Q3.

FAQs

Burn rate

Cash outflow rate. Net burn = cash out - cash in (operational).

Types

Gross burn: total cash out. Net burn: cash out minus cash in.

Benchmarks

Early stage often $50k–$300k/mo depending on team size and GTM; align with milestones.

Worked example

Cash out $280k; Cash in $110k → Net burn $170k for the month.

Common pitfalls

Excluding capex/financing effects incorrectly; averaging volatile months without notes.

How to show in your deck

Financials slide: 6–12 months of net burn trend with major step‑changes annotated.

Deck snippet

Net burn $170k/mo; step‑down with infra optimizations in Q3.

Burn rate

Cash outflow rate. Net burn = cash out - cash in (operational).

Types

Benchmarks

Worked example

Common pitfalls

How to show in your deck

Deck snippet

FAQs

How do I calculate Burn?

What are good benchmarks?

Common pitfalls?

Burn rate

Cash outflow rate. Net burn = cash out - cash in (operational).

Types

Benchmarks

Worked example

Common pitfalls

How to show in your deck

Deck snippet

FAQs

How do I calculate Burn?

What are good benchmarks?

Common pitfalls?