The Crimson Bench

Finance · Free Interactive Tool

Burn Multiple Calculator

How efficiently you turn cash into growth.

Your Numbers

The Result

Burn multiple2.0x

The Operator's Read

2.0x is acceptable. Aim under 1.5x to keep the next raise easy.

Ask an operator →

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

About the Burn Multiple Calculator

Enter net burn and net new ARR to get your burn multiple — dollars burned per dollar of new recurring revenue. The efficiency metric investors watch.

How the Burn Multiple Calculator Works

2 inputs in, 1 results out — computed live on your device. Here's exactly what it uses.

InputExample value
Net burn (period)$200,000
Net new ARR (period)$100,000

Worked Example

Using the example inputs above, the tool returns:

Burn multiple

2.0x

The Operator's Read

2.0x is acceptable. Aim under 1.5x to keep the next raise easy.

Assumptions & Limitations

  • This is a single-point calculator — it answers one question at a time. For a full time-based projection, use the matching Toolkit Pro simulator.
  • Defaults are illustrative. Replace them with your real numbers before relying on the result.
  • Educational tool only — not financial, investment, tax, or legal advice.

Frequently Asked Questions

What does the Burn Multiple Calculator calculate?

Enter net burn and net new ARR to get your burn multiple — dollars burned per dollar of new recurring revenue. The efficiency metric investors watch. It takes 2 inputs — Net burn (period), Net new ARR (period) — and returns Burn multiple.

How do I use the Burn Multiple Calculator?

Enter your figures in the fields above and the result updates instantly. No signup, no limits, and nothing leaves your browser — the math runs on your device.

Is the Burn Multiple Calculator free?

Yes, completely free. For the full time-based simulation — projection tables, scenarios, Excel/PDF export, and AI analysis — see the matching Toolkit Pro simulator.

Who built this tool?

The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. It uses the exact method they'd apply in an engagement.

Is this financial advice?

No. The Burn Multiple Calculator is an educational tool for directional planning — not financial, investment, tax, or legal advice.

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

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