Burn Multiple Calculator: Cash Burn vs Net New ARR
Measure how efficiently you turn cash into growth. Enter net burn and ARR at the start and end of a period to get your burn multiple, its rating and capital efficiency.
QUICK ANSWERBurn multiple = net burn ÷ net new ARR over the same period. Burning ₹1.5 Cr in a quarter to add ₹1 Cr of ARR is a 1.5x burn multiple. Under 1x is amazing, 1–1.5x great, 1.5–2x good, 2–3x suspect and above 3x bad.
Burn multiple = Net burn ÷ (ARR end − ARR start)
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What the Burn Multiple Calculator does
- ✅ Burn multiple with rating
- ✅ Net new ARR
- ✅ Capital efficiency (ARR ÷ raised)
- ✅ Benchmark table
- ✅ Copy or share
How to use the Burn Multiple Calculator
- STEP 1Enter your numbersType the figures you know. Every field starts with a realistic example so you can see how it works.
- STEP 2Read the result instantlyResults, tables and the plain-English explanation update as you type. No submit button, no login.
- STEP 3Test scenariosChange one assumption at a time (valuation, growth, dilution, exit) to see what really moves the outcome.
- STEP 4Share or saveCopy the summary, send it on WhatsApp or print to PDF for your co-founders, board or investment committee.
Why investors love burn multiple
Growth at any cost stopped working after 2021. Burn multiple captures in one number how much cash a company needs to add each rupee of ARR, and it punishes both high spending and churn.
Measure it over a quarter or longer to smooth one-off payments, and compare against your own trend as much as against benchmarks.
Frequently asked questions
What is a good burn multiple?
Below 1.5x is great for most venture-backed startups; seed companies may run higher while finding product-market fit; above 3x is a warning sign.
What if net new ARR is negative?
Then the burn multiple is undefined and the company is shrinking while burning cash, a serious red flag.
Can non-SaaS companies use burn multiple?
Yes, by replacing ARR with annualised recurring gross profit or revenue run-rate, as long as you use the same definition every period.
Is this tool free? Do I need to sign up?
Yes. It is completely free, needs no login and has no usage limit. FastFee builds payment collection software; these startup and investor tools are free resources for founders, angels and fund managers.
Is my data private?
Yes. Everything you type stays in your own browser on this device (local storage). Nothing is uploaded to FastFee. Export or print a copy if you need to keep it.
Use it together with
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