Burn Multiple & Runway Calculator

Is my startup burning cash efficiently?

Burn multiple shows how many dollars you burn to add one dollar of annual recurring revenue. Lower is better.

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How this calculator works

Burn multiple = net burn ÷ net new ARR over the same period. Runway = cash ÷ monthly net burn. A widely used rule of thumb: under 1 is excellent, 1–1.5 great, 1.5–2 good, 2–3 worrying, above 3 bad.

Frequently asked questions

Why do investors look at burn multiple?

It captures growth and spending in one number, so it shows whether growth is being bought too expensively — especially when funding is harder to raise.

How much runway should a startup keep?

Many founders aim for 18–24 months after a raise, because fundraising often takes six months or more.

Results are estimates based on the numbers you enter and simplified assumptions. They are not financial advice. See our disclaimer.

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