Glossary · Operating finance
Burn rate
How much cash the company spends per month **more** than it earns — the speed of the leak. Net burn subtracts revenue from gross spending.
Related: Runway · Monthly recurring revenue (MRR) · Customer acquisition cost (CAC)
A bit more nuance▾
- High burn with weak traction is the classic startup risk story.
- Emerging-market FX can change effective burn overnight.
Go deeper▾
Discussion questions▾
- Which costs are “rent” vs “bets” in your budget?
- What metric would justify doubling burn next quarter?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.