Burn Multiple
Calculator
Calculate your burn multiple - the key metric VCs use to measure capital efficiency. A lower burn multiple means you're spending wisely to grow.
Your Metrics
Total cash burned (expenses - revenue) in the period
New ARR added (new + expansion - churned - contraction)
Enter your burn and ARR growth to calculate burn multiple
Burn Multiple Benchmarks
Under 1x = Exceptional
You're adding more ARR than you're burning. This is rare and highly attractive to investors.
1-2x = Good
Solid efficiency. Most well-run SaaS companies fall in this range during growth phase.
2-3x = Needs Improvement
Below average. Focus on either reducing burn or accelerating growth before fundraising.
3x+ = Concerning
High burn relative to growth. Investors will be skeptical. Prioritize efficiency immediately.
Ready to Improve Your Efficiency?
See what VCs find when they research your startup. AI-powered due diligence — free in 60 seconds.
Get Free AI Analysis