VC Burn Rate Calculator
Monthly Cash Burn Analysis
Output Benchmarks
How to use this VC Burn Rate Calculator
Input Data
Enter your current Venture Capital metrics into the labeled fields above.
Analyze Ratios
Instantly view efficiency ratios calculated against elite standards.
Optimize
Compare your results with the Benchmarks on the right to find leverage points.
Strategic Context
THE STRATEGIC VIEW
THE CLOCK IS TICKING
If you are losing $50k a month and have $200k in the bank, you don't have a "startup." You have a 4-month-long explosion.
The Conflict: Founders treat "Burn Rate" as a badge of honor. It isn't. It's a wound.
The Truth: Cash is oxygen. When it runs out, the brain stops working. You stop being a CEO and start being a beggar.
The Fix: You must become "Default Alive." Profitability before the cash ends.
Operational Reality
THE J-CURVE INVESTMENT
VCs expect high burn rates initially. It's the "J-Curve". You lose money to build a moat.
However, burn must be "efficient". The metric to watch is "Burn Multiple": How much cash do you burn to add $1 of Net New ARR?
Best in class is < 1x. Typical is 2x. If you burn $5 to get $1 revenue, you are lighting money on fire.
GROSS BURN VS NET BURN
Gross Burn = Total money leaving the bank.
Net Burn = Gross Burn - Revenue.
In early stage, Revenue is negligible, so Gross = Net. As you scale, Revenue should cover OpEx, and VC money should only fund aggressive Growth (Sales/Mktg).
Tactical FAQ
TACTICAL Q&A
Q: Is high burn always bad?
Q: How to reduce burn without firing?
Output Benchmarks
Master The System
This calculator is just one tactical step. The full strategy is documented in the core protocol.
Source Lesson
Finance & Capital: Venture Capital Protocol