Burn Rate
Burn rate is the amount of cash your business spends each month. If you have $60K in the bank and burn $5K/month, you have 12 months of runway. This metric is critical for businesses that aren't profitable yet or have seasonal revenue swings.
Formula
(Starting Cash Balance - Ending Cash Balance) / Number of Months
In plain English
How much cash disappears from your bank account each month
Why Burn Rate Matters
This metric tells you how long your business can survive without additional revenue or funding. It's especially critical during slow seasons or when investing in growth. Knowing your burn rate lets you plan ahead and avoid running out of cash.
Burn Rate by Industry
Choose your industry to see specific benchmarks, examples, and improvement strategies
Burn Rate for Cleaning Companies
How much cash you're spending each month to run your business
Burn Rate for Salons & Spas
How much cash you're spending each month to run your business
Burn Rate for Restaurants
How much cash you're spending each month to run your business
Burn Rate for HVAC Contractors
How much cash you're spending each month to run your business
Burn Rate for Marketing Agencies
How much cash you're spending each month to run your business
Burn Rate for Consulting Firms
How much cash you're spending each month to run your business
Burn Rate for Freelancers
How much cash you're spending each month to run your business
Burn Rate for Creative Agencies
How much cash you're spending each month to run your business
Burn Rate for IT Services
How much cash you're spending each month to run your business
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