Net burn rate: Measuring Monthly Cash Consumption
Net burn measures how much cash outflows exceed inflows per month. It describes cash consumption, which can differ from accounting losses.
Use the Net burn rate Calculator to enter your own figures and compare the result with the worked example below.
Net burn rate formula
Net burn = Cash outflow − Cash inflow per month
Worked example
| Item | Example value |
|---|---|
| Monthly cash outflow | 20000 USD |
| Monthly cash inflow | 15000 USD |
| Net burn rate | 5,000 USD |
These are illustrative inputs, not current prices, rates or recommended targets. Where a currency is shown, keep all comparable money amounts in the same currency; conversion examples identify the two sides separately.
How to interpret the result
Exclude one-off financing inflows when assessing recurring operating burn, or label them clearly. A negative result means the entered period generated net cash.
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Method and further reading
The example follows the FinMathly calculator method. For broader background, see SEC: Understanding financial statements. The background resource may use jurisdiction-specific terms; it does not replace the assumptions of this calculator.
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