Business & Accounting
Burn Rate
Definition
The rate at which a business spends cash, typically expressed as a monthly figure. Gross burn rate is total monthly operating expenses. Net burn rate is monthly expenses minus monthly revenue. A business spending $8,000 per month with $3,000 in revenue has a net burn rate of $5,000. Burn rate is most commonly discussed in the context of startups and new businesses that are not yet profitable, but it is equally relevant for freelancers during slow periods or when building a new service offering.
Related Templates
These SheetCraft templates use or relate to Burn Rate:
- Freelancer Financial Hub, All-in-one financial management for freelancers, income tracking, expense categorization, quarterly tax estimates, and client profitability.
- Small Business Bookkeeping System, Simple bookkeeping for small business owners who don't have an accountant, income, expenses, P&L, sales tax, and bank reconciliation.