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Divides cash burn rate by monthly recurring revenue to show how many months of revenue are burned monthly. Indicates runway efficiency.

ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |

  1. 1Calculate monthly cash burn (expenses - revenue)
  2. 2Divide by MRR
  3. 3Result < 1.0 is positive; >1.0 indicates spending more than earning
  4. 4Track monthly to spot trends

ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ

ଇନପୁଟ୍
$50k spend, $10k ARR
ଫଳ
5.0x

ଏଡ଼ାଇବା ଯୋଗ୍ୟ ସାଧାରଣ ଭୁଲ

  • Not separating one-time costs from recurring
  • Ignoring non-cash expenses in burn calculation

ବାରମ୍ବାର ଜିଜ୍ଞାସା

What's a healthy burn multiple?

Ideally < 0.75; >1.0 unsustainable long-term; >2.0 indicates severe cash problems.

How do I improve burn multiple?

Reduce expenses, increase revenue per user, or accelerate growth to justify burn.

ସେଟିଂ