Free SaaS calculator
SaaS Burn Multiple Calculator
Use this burn multiple calculator to estimate how much cash burn is required to create one dollar of net new ARR. It is a simple efficiency lens for SaaS growth planning.
How to use this calculator
Enter net burn for the period you want to evaluate.
Enter net new ARR from the same period.
Review the burn multiple and compare it with retention, margin, and payback context.
Calculator Inputs
Adjust assumptions and review the result.
Cash used during the period after revenue and expenses.
ARR added during the same period after churn and contraction.
Export or save this scenario for planning notes.
Burn multiple
1.5x
Net burn / net new ARR
Net burn
$300,000
Cash used in period
Net new ARR
$200,000
ARR added in period
Interpret this result
More efficient ARR creation
This scenario suggests a more efficient relationship between cash burn and net new ARR. It should still be reviewed alongside runway, retention quality, gross margin, and payback period.
Assumption quality check
- The calculation assumes net burn and net new ARR are measured over the same period.
- Use net new ARR after churn and contraction instead of gross bookings.
Formula used
Burn multiple = Net burn / Net new ARR
Burn multiple
Net burn / Net new ARR
For broader model limits, read the Aura Revenue methodology.
Educational disclaimer
Aura Revenue provides educational forecasting tools and examples only. Outputs are estimates based on user-provided assumptions and should not be treated as financial, legal, tax, accounting, or investment advice.
Common mistakes to avoid
- Using gross new ARR instead of net new ARR.
- Mixing monthly burn with annual net new ARR without normalizing the period.
- Treating burn multiple as a complete replacement for runway, retention, and unit economics.
Next planning step
Use this result in a forecast workflow
A single metric is useful, but SaaS planning works best when revenue, churn, acquisition efficiency, and capital efficiency are reviewed together.
Burn Multiple FAQ
What is burn multiple?
Burn multiple compares net cash burn to net new ARR. It estimates how much burn is required to add one dollar of ARR.
What period should I use?
Use the same period for net burn and net new ARR. For example, compare quarterly burn with quarterly net new ARR.
Can burn multiple be negative?
In this simplified calculator, burn is entered as a positive cash-use number. A cash-generating company would need a separate interpretation.