Burn Multiple Calculator
Calculate burn multiple from cash burned and net new ARR. Measure startup growth efficiency, monthly burn and ARR growth.
Burn multiple measures how much cash a startup burns to create each rupee of net new ARR. It is a growth efficiency metric, especially useful for SaaS and recurring-revenue companies. This calculator uses starting ARR, ending ARR, total cash burned and period length to estimate net new ARR, burn multiple, monthly burn and ARR growth.
Burn Multiple Calculator
Change the inputs on the left. Results update instantly on the right.
Growth efficiency inputs
Burn Multiple Calculator ஏன் பயன்படுத்த வேண்டும்
Revenue growth alone can hide inefficient spending. Burn multiple connects growth to cash consumption. A company that adds ARR while burning very little cash is more efficient and usually has more strategic options. A high burn multiple signals that growth may be too expensive for the current funding environment.
ஒரே பார்வையில் நன்மைகள்
Efficiency view
Measure how much cash is spent to generate each rupee of net new ARR.
ARR growth context
See net new ARR and ARR growth alongside burn multiple.
Useful for board reviews
Track whether growth is becoming more or less capital efficient over time.
Burn Multiple Calculator ஐ எவ்வாறு பயன்படுத்துவது
- 1
Enter starting ARR
Use ARR at the beginning of the measurement period.
- 2
Enter ending ARR
Use ARR at the end of the period.
- 3
Enter cash burned
Use net cash burned during the same period.
- 4
Review burn multiple
Lower values indicate more capital-efficient growth.
உதாரணம்
Annual burn multiple example
A company grows from Rs 1 crore ARR to Rs 2.2 crore ARR while burning Rs 1.8 crore.
- Net new ARR
- Rs 1.2 crore
- Cash burned
- Rs 1.8 crore
- Burn multiple
- 1.5x
- Monthly burn
- Rs 15 lakh
கருதுகோள்கள் மற்றும் வரம்புகள்
- Net new ARR is ending ARR minus starting ARR.
- Cash burn should be measured over the same period as ARR growth.
- The calculator does not adjust for deferred revenue, one-time costs or non-recurring ARR movements.
அடிக்கடி கேட்கப்படும் கேள்விகள்
What is burn multiple?
Burn multiple is cash burned divided by net new ARR over the same period.
What is a good burn multiple?
Lower is better. Many investors view below 1x as very efficient, 1x to 2x as solid and above 3x as a warning sign, depending on stage.
Can burn multiple be negative?
If ARR shrinks, net new ARR is negative and the metric is not meaningful. The calculator shows no valid ratio in that case.
Is burn multiple only for SaaS?
It is most common for recurring revenue businesses, but the same idea can be adapted to other startups using a consistent revenue metric.
இறுதியாக
Use the burn multiple calculator alongside runway and unit economics. It helps explain whether growth is being bought efficiently or whether the company needs to improve retention, sales efficiency or operating discipline.
எல்லா RunwayCalc கால்குலேட்டர்களையும் உலாவுதொடர்புடைய வழிகாட்டிகள்
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