What's your burn multiple?
How much cash you burn for every dollar of net new ARR - the efficiency number investors check first.
Your numbers
Starting numbers: A seed-stage software company with a small team, adding recurring revenue every month and spending more than it earns. Change anything below.
Everything you spend in a month - payroll, tools, rent, marketing.
Recurring revenue added this month, after churn and contraction.
What share of revenue is left after the cost of delivering it.
Where annual recurring revenue stood at the start of the month.
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Cash burned per unit of new revenue
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How it's computed
About this calculator
Burn multiple divides your total monthly burn by the net new ARR you added in the same period. It answers a blunt question: how much cash does a dollar of new recurring revenue cost you? A multiple below one means you add more ARR than you burn - efficient growth. As the multiple climbs, each new dollar of ARR costs you more cash, and your runway starts doing the work your product should be doing. The chain above shows exactly how the number is computed - nothing is hidden. Pull the levers to match your own burn, growth, and margin, and watch the multiple and ARR efficiency move together. When the numbers look like yours, save the model to stress-test scenarios, set thresholds, and share it with your team or investors.
Every number on this page is computed live by the LeverMap engine.