Burn Rate — Monthly Cash Burn
Definition: How much cash you lose each month. Burn determines runway more than revenue.
Example
In board meetings, you'll often hear something like: "Let's pull the latest Burn Rate numbers before we make a call" — shorthand for monthly cash burn.
When you'll hear it
Burn Rate shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to monthly cash burn — and they expect the room to already know what that means.
FAQs
What does Burn Rate stand for?
Burn Rate stands for Monthly Cash Burn.
What does Burn Rate mean in business and finance?
How much cash you lose each month. Burn determines runway more than revenue.
Where will I hear Burn Rate used at work?
Burn Rate comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for monthly cash burn, so people assume you already know the term.