Metrics
Burn Rate
Quick definition
Net cash consumed per month.
Gross burn is total cash out; net burn is cash out minus cash in. When founders say 'burn' they usually mean net burn. Track it monthly and against forecast. A spike in net burn without a matching revenue increase is a warning sign.
Related metrics terms
ARR (Annual Recurring Revenue)
Annualized value of your subscription revenue at a point in time.
MRR (Monthly Recurring Revenue)
Monthly equivalent of ARR, useful for month-over-month tracking.
Net Revenue Retention (NRR)
Revenue from your existing customer base 12 months later, including expansion and churn.
Gross Revenue Retention (GRR)
NRR without upsell — what you keep before expansion.
See this in action
Insights and tools where Burn Rate shows up.
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