evyAI Glossary Free tools

Burn Rate

In one sentenceHow much cash a business loses each month when spending is more than income. Common language for startups.

What it means

Gross burn is total monthly spending. Net burn is spending minus revenue: the actual amount the bank balance shrinks each month.

How to use it

FormulaNet burn = monthly cash out − monthly cash in

Related terms

Runway Cash Flow OpEx vs CapEx

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