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Free Burn Multiple Calculator - SaaS Capital Efficiency

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 Formula

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).

Burn Multiple Benchmarks

  • Under 1x: Amazing - efficient growth
  • 1x to 1.5x: Great
  • 1.5x to 2x: Good
  • 2x to 3x: Suspect
  • Over 3x: Bad - reassess your efficiency

DealARR computes Burn Multiple from your ARR movements and cash flow data automatically, alongside Magic Number, CAC payback, and other efficiency metrics.