Net Cash Burn

The Net Cash Burn KPI refers to the amount of money by which cash decreases in a set period.

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Written by Ryan
Updated over a week ago
  • Measures how quickly your business is spending money (net-negative cash flow)

  • If your Cash on Hand increases in a period your Net Cash Burn is negative (because you generate money)


Don’t include

Cash inflows (e.g. revenues) and cash outflows (e.g. costs)

Unusual positive cash flows such as received investments


CoH at beginning of period

- CoH at beginning of period


= Net Cash Burn

A company has started a month with 52.000 € COH at the end of the month it has 48.000 € left. Their Net Cash Burn is therefore calculated as follows:






Net Burn/Net Burn Rate/Cash Burn Rate




Currency (Euro / Dollar / YEN …)

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