How to Calculate Burn Multiple
What is Burn Multiple?
Burn Multiple Calculator helps you measure the effectiveness and profitability of your marketing investments.
Formula
Burn Multiple = Net Burn / Net New ARR
Step-by-Step Guide
- 1Divide monthly cash burn by new ARR added
- 2Calculate the result using the formula
- 3Compare against benchmarks to evaluate performance
Worked Examples
Input
$100k burn, $50k new ARR
Result
Burn Multiple = 100000/50000 = 2× (aim <1)
Common Mistakes to Avoid
- ✕Not accounting for all costs in the calculation
- ✕Ignoring attribution window when measuring results
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