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How to Calculate Burn Multiple

What is Burn Multiple?

Burn Multiple Calculator helps you measure the effectiveness and profitability of your marketing investments.

Formula

Burn Multiple = Net Burn / Net New ARR

Step-by-Step Guide

  1. 1Divide monthly cash burn by new ARR added
  2. 2Calculate the result using the formula
  3. 3Compare against benchmarks to evaluate performance

Worked Examples

Input
$100k burn, $50k new ARR
Result
Burn Multiple = 100000/50000 = 2× (aim <1)

Common Mistakes to Avoid

  • Not accounting for all costs in the calculation
  • Ignoring attribution window when measuring results

Ready to calculate? Try the free Burn Multiple Calculator

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