Burn Multiple

Burn multiple calculator

Enter net burn and net new ARR. See your burn multiple, how published benchmarks read it, and what would move you to the next band.

Use net burn and net new ARR for the same period, in one currency.

Starting cash less ending cash, plus any money raised in the period. Not sure of your net burn? Work it out from cash.

Have MRR instead? Net new ARR = (ending MRR − starting MRR) × 12.

Optional. Adds L40’s median for your ARR band.

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Your result

1x1.5x2x3xAmazingGreatGoodSuspectBad

Equal-width bands, not to scale.

–net burn divided by –net new ARR equals –.––xburn multiple

Your multiple, its band and what would move it show here.

  • Amazing

    Under 1x

  • Great

    1 to 1.5x

  • Good

    1.5 to 2x

  • Suspect

    2 to 3x

  • Bad

    Over 3x

At the edges this site reads exactly 1x and 1.5x as Great, exactly 2x as Good and exactly 3x as Suspect.

This is arithmetic and published benchmarks. It is not financial, investment or tax advice.

How to read it

The formula

Burn multiple = net burn ÷ net new ARR, for the same period. What it means, with worked examples.

The bands

Bands are Sacks’s own table, which he offers as rules of thumb for venture-stage startups. Source: his post, 2020-04-23.

ARR band medians

L40 compiles benchmarks from named sources. Pick an ARR band above and the result is read against its median. Source: L40. Every source, side by side, checked 2026-11-07.

Who runs this

Operated by GrowthMarketer, LLC. The site shows no user counts, logos or testimonials, because it has none to show. How it earns.