Burn Multiple, popularized by David Sacks, measures how much you burn to generate each dollar of net new ARR. Lower is better. Use this free Burn Multiple calculator to score capital efficiency.
Burn Multiple = Net Burn / Net New ARR. Net Burn is monthly cash burn, and Net New ARR is the change in ARR over the same period (new + expansion - contraction - churn).
DealARR computes Burn Multiple from your ARR movements and cash flow data automatically, alongside Magic Number, CAC payback, and other efficiency metrics.