The Crimson Bench

ProSaaS · Simulator

Capital Efficiency Simulator

How many dollars you burn per dollar of ARR.

Assumptions

ARR added

$1,080,000

Total burned

$2,700,000

Burn multiple

2.50x

MonthARR AddedCumulative BurnBurn Multiple
Month 3$180,000$450,0002.50x
Month 6$360,000$900,0002.50x
Month 9$540,000$1,350,0002.50x
Month 12$720,000$1,800,0002.50x
Month 15$900,000$2,250,0002.50x
Month 18$1,080,000$2,700,0002.50x

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Every row, plus Excel/PDF export and AI analysis.

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Built by The Crimson Bench · Educational model, not financial advice

About the Capital Efficiency Simulator

Model monthly burn against net new ARR to track your burn multiple as you scale — the number investors use to judge efficiency.

It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.

How the Capital Efficiency Simulator Works

The model takes 2 assumptions and returns 3 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.

The Inputs

AssumptionExample value
Monthly net burn$150,000
Net new ARR / month$60,000

Worked Example

Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.

ARR added

$1,080,000

Total burned

$2,700,000

Burn multiple

2.50x

MonthARR AddedCumulative BurnBurn Multiple
Month 3$180,000$450,0002.50x
Month 6$360,000$900,0002.50x
Month 9$540,000$1,350,0002.50x
Month 12$720,000$1,800,0002.50x
Month 15$900,000$2,250,0002.50x
Month 18$1,080,000$2,700,0002.50x

The Operator's Read

Under 1x burn multiple is elite; over 2x, investors get nervous. This single number tells them whether your growth is efficient or just expensive — and it sets your valuation as much as growth does.

Assumptions & Limitations

  • The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
  • Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
  • It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
  • This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.

Frequently Asked Questions

What does the Capital Efficiency Simulator calculate?

Model monthly burn against net new ARR to track your burn multiple as you scale — the number investors use to judge efficiency. It takes 2 assumptions — Monthly net burn, Net new ARR / month — and returns ARR added, Total burned, Burn multiple, along with a full projection table you can export.

How do I use the Capital Efficiency Simulator?

Enter your own figures in the input fields above — Monthly net burn, Net new ARR / month, and the rest. The model recalculates instantly and shows the resulting ARR added and full breakdown. No sign-up needed to run it.

Is the Capital Efficiency Simulator free?

Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.

What's the difference between this and a free calculator?

A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.

Who built the Capital Efficiency Simulator?

The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.

Is this financial advice?

No. The Capital Efficiency Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.

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The Crimson Bench · Est. 2002 · Founded in New York City

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