Check out 500B’s business resources to help you found, launch or build your business.


What is Burn Rate?

Burn rate is the net amount of money between what has been collected from customers and what has been spent on expenses. This refers to actual cash that has cleared in or out of the bank and not your check register, Quickbooks or other accounting softwares. If someone asks you for your burn rate they are typically asking for the last monthly burn amount or the expected amount for the current month.

Check out this Burn_Rate calculator to help you track your own burn rate or create projections. Just plug in cash received and cash spent.



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