1. Finance
  2. Liquidity & Solvency

Burn Rate


The rate at which a company is spending its capital, especially important for startups or growth-focused companies. It helps investors and company executives determine how long the company can operate before needing additional funding.


Total Cash Spent Over a Period / Number of Months in that Period


If a startup spent $300,000 over 3 months, its burn rate is $100,000/month.