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SaaS Burn Multiple Calculator

Enter net burn and net new ARR to get the burn multiple.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

The burn multiple is a capital-efficiency metric popularized by venture capitalist David Sacks for SaaS startups: net burn ÷ net new ARR, i.e. how many dollars a company spends to generate one dollar of new annual recurring revenue. A burn multiple below 1x is considered amazing, 1-1.5x very good, and above 3x a red flag — the lower the number, the more efficiently a company converts cash into recurring growth.

Venture capitalists, startup CFOs, and founders track burn multiple quarter over quarter (rather than growth rate alone) because it accounts for how much cash growth is actually costing, which matters far more in a tight fundraising environment than growth rate in isolation.

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