SaaS Burn Multiple Efficiency Calculator
The SaaS Burn Multiple measures capital efficiency across the entire business by dividing Net Cash Burned over a period by Net New ARR added in the same period: BM = NB / NARR.
Dollars of net cash burned per $1 of Net New ARR added
Total negative free cash flow over the quarter or year
New + Expansion ARR minus Churned ARR over the period
Step-by-Step Calculation
The SaaS Burn Multiple measures capital efficiency across the entire business by dividing Net Cash Burned over a period by Net New ARR added in the same period: BM = NB / NARR.
Real-World Reference Values
Adding more than $1 of permanent ARR per $1 burned
Healthy Series A/B growth efficiency
Indicates GTM or R&D overhead outpacing ARR traction
20-Row Comparison Table
Burn Multiple (BM) · Net Cash Burned (NB)
| # | Net Cash Burned ($) | Burn Multiple (BM) | Δ % |
|---|---|---|---|
| 01 | 10,000.00 $ | 0.005 | -99.60% |
| 02 | 864,664.47 $ | 0.432332 | -65.41% |
| 03 | 1,719,328.95 $ | 0.859664 | -31.23% |
| 04 | 2,500,000.00 $Current | 1.25 | 0.00% |
| 05 | 3,428,657.89 $ | 1.7143 | +37.15% |
| 06 | 4,283,322.37 $ | 2.1417 | +71.33% |
| 07 | 5,137,986.84 $ | 2.569 | +105.52% |
| 08 | 5,992,651.32 $ | 2.9963 | +139.71% |
| 09 | 6,847,315.79 $ | 3.4237 | +173.89% |
| 10 | 7,701,980.26 $ | 3.851 | +208.08% |
| 11 | 8,556,644.74 $ | 4.2783 | +242.27% |
| 12 | 9,411,309.21 $ | 4.7057 | +276.45% |
| 13 | 10,265,973.68 $ | 5.133 | +310.64% |
| 14 | 11,120,638.16 $ | 5.5603 | +344.83% |
| 15 | 11,975,302.63 $ | 5.9877 | +379.01% |
| 16 | 12,829,967.11 $ | 6.415 | +413.20% |
| 17 | 13,684,631.58 $ | 6.8423 | +447.39% |
| 18 | 14,539,296.05 $ | 7.2696 | +481.57% |
| 19 | 15,393,960.53 $ | 7.697 | +515.76% |
| 20 | 16,248,625.00 $ | 8.1243 | +549.95% |
Frequently Asked Questions
Why do investors prefer Burn Multiple over magic number?+
Unlike sales efficiency metrics that only look at S&M spend, Burn Multiple captures total company cash burn including R&D, G&A, and gross margin drag.
How much Net New ARR must we add this year to stay below a 1.2x Burn Multiple?+
Click SOLVE FOR on NARR, enter your budgeted annual net burn NB, and set BM = 1.2.
What happens when a company reaches cash-flow breakeven?+
Net Cash Burned NB drops to zero, driving the Burn Multiple to 0.0x.