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

Back to Glossary

GLOSSARY

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.

Back to Glossary

GLOSSARY

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.

Burn rate

Types

Benchmarks

Worked example

Common pitfalls

How to show in your deck

Burn rate

Types

Benchmarks

Worked example

Common pitfalls

How to show in your deck

Deck snippet

FAQs

Types

Benchmarks

Worked example

Common pitfalls

How to show in your deck

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?