How to use this calculator
- Enter net cash burn during period, net new arr during period.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Use matching measurement periods and positive new ARR. Cash-generating companies can have negative multiples.
Worked example
With net cash burn during period = 100000, net new arr during period = 50000, burn multiple is approximately 2.
What the result means
Lower positive multiples indicate less cash spent per unit of incremental ARR under this convention.
Common questions
How should I interpret burn multiple?
Lower positive multiples indicate less cash spent per unit of incremental ARR under this convention.
What should I check before using this result?
Use matching measurement periods and positive new ARR. Cash-generating companies can have negative multiples.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.