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Now, you’re ready to calculate the number of months your business can survive if your income and expenses remain the same. Taking all cash inflows and outflows into account, Super is losing nearly $67,000 each month. Net burn rate = (starting cash balance - ending cash balance) ÷ number of months ![]() Here’s an example using Super’s figures so far: If you’re using several years of data, remember to convert it to months to properly calculate burn rate and startup runway. Net burn rate is the preferred metric for most startups because it accounts for common cash inflows like investor funds, sales, loans, and more.
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