Burn Rate
The rate at which a company spends cash over a period usually stated monthly.
Plain English
How quickly the company is using its money.
In context
Gross burn measures total cash outflow while net burn accounts for cash inflow such as revenue.
Example
“Hiring increased our monthly net burn rate.”
When you'll hear this
- budget review
- fundraising
- board meeting
Common misunderstanding
Burn rate should specify gross or net and the measurement period.
Also known as
burn
Commonly used by
Related terms
Updated: 2026-08-25
