GlossaryBurn Rate
Startup Metrics

Burn Rate

Definition

The rate at which your company spends its cash reserves. Net burn = total cash spent minus revenue. If you spend ₹15L/month and earn ₹5L, your net burn is ₹10L/month.

Why founders care

Divide your cash in bank by your net burn rate to get your runway. Always know how many months of runway you have. Raise the next round when you have 9–12 months of runway remaining.

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