Cash Burn Rate Calculator

✖Total Monthly Cash Sales refer to the sum of all revenues generated from cash transactions within a given month.ⓘ Total Monthly Cash Sales [TMC]			+10% -10%
✖Total Monthly Cash Expenses refer to the sum of all expenses paid out in cash during a specific month.ⓘ Total Monthly Cash Expenses [TMCE]			+10% -10%

✖Net Burn refers to the rate at which a company is using up its cash reserves over a specific period, typically on a monthly or quarterly basis.ⓘ Cash Burn Rate [NB]

⎘ Copy

👎

Formula

✖

Cash Burn Rate

Formula

`"NB" = "TMC"-"TMCE"`

Example

`"70000"="550000"-"480000"`

Calculator

LaTeX

Reset

👍

Download Cash Management Formulas PDF PDF Image

Cash Burn Rate Solution

STEP 0: Pre-Calculation Summary

Formula Used

Net Burn = Total Monthly Cash Sales-Total Monthly Cash Expenses
NB = TMC-TMCE
This formula uses 3 Variables

Variables Used

Net Burn - Net Burn refers to the rate at which a company is using up its cash reserves over a specific period, typically on a monthly or quarterly basis.
Total Monthly Cash Sales - Total Monthly Cash Sales refer to the sum of all revenues generated from cash transactions within a given month.
Total Monthly Cash Expenses - Total Monthly Cash Expenses refer to the sum of all expenses paid out in cash during a specific month.

STEP 1: Convert Input(s) to Base Unit

Total Monthly Cash Sales: 550000 --> No Conversion Required
Total Monthly Cash Expenses: 480000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

NB = TMC-TMCE --> 550000-480000

Evaluating ... ...

NB = 70000

STEP 3: Convert Result to Output's Unit

70000 --> No Conversion Required

FINAL ANSWER

70000 <-- Net Burn

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Financial Accounting » Cash Management » Cash Burn Rate

Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has verified this Calculator and 50+ more calculators!

< 9 Cash Management Calculators

Merton Model

Go Distance to the Default = ln(Market Value of Company Assets/Market Value of Company Debt)+((Risk Free Interest Rate+(Volatility of Company Asset Value)^2/2)*Time to Maturity)/(Volatility of Company Asset Value*sqrt(Time to Maturity))

Baumol's Model

Go Cost of Providing a Service = sqrt((2*Cost of Conversion*Total Requirement of Cash)/Interest Rate)

Cash Conversion Cycle

Go Cash Conversion Cycle = Days Inventory Outstanding+Days Sales Outstanding-Days Payables Outstanding

Miller Orr Model

Go Miller Orr Model = 3*((3*Cost of Conversion*Variance)/(4*Interest Rate/360))^(1/3)

Cash Surrender Value

Go Cash Surrender Value = mod(Enhanced Accumulated Value,Surrender Charges)

Cash Coverage

Go Cash Coverage = Earnings before Interest and Taxes/Interest Expense

Cash Burn Rate

Go Net Burn = Total Monthly Cash Sales-Total Monthly Cash Expenses

Implied Cash Runway

Go Implied Cash Runway = Cash Balance/Net Burn

Cash Budget

Go Cash Budget = Total Receipts-Total Payments

Cash Burn Rate Formula

Net Burn = Total Monthly Cash Sales-Total Monthly Cash Expenses
NB = TMC-TMCE

What is Cash Burn Rate?

Cash burn rate, often simply referred to as burn rate, is a financial metric that measures the rate at which a company is using up its available cash reserves over a specific period, usually on a monthly basis. It indicates the rate of negative cash flow and helps assess how long a company can sustain its operations before it depletes its cash resources. The cash burn rate is an essential indicator for investors, lenders, and management to evaluate a company's financial health and sustainability.
To calculate the cash burn rate, subtract the total cash inflows, such as revenue and other funding sources, from the total cash outflows, which include operating expenses, capital expenditures, and any other cash disbursements during the period. The resulting figure represents the net cash flow, which may be positive or negative. A negative net cash flow indicates that the company is spending more cash than it is generating, leading to a depletion of cash reserves over time.

How to Calculate Cash Burn Rate?

Cash Burn Rate calculator uses Net Burn = Total Monthly Cash Sales-Total Monthly Cash Expenses to calculate the Net Burn, The Cash Burn Rate formula is a financial metric that measures the rate at which a company is spending its available cash reserves or funds. Net Burn is denoted by NB symbol.

How to calculate Cash Burn Rate using this online calculator? To use this online calculator for Cash Burn Rate, enter Total Monthly Cash Sales (TMC) & Total Monthly Cash Expenses (TMCE) and hit the calculate button. Here is how the Cash Burn Rate calculation can be explained with given input values -> 70000 = 550000-480000.

FAQ

What is Cash Burn Rate?

The Cash Burn Rate formula is a financial metric that measures the rate at which a company is spending its available cash reserves or funds and is represented as NB = TMC-TMCE or Net Burn = Total Monthly Cash Sales-Total Monthly Cash Expenses. Total Monthly Cash Sales refer to the sum of all revenues generated from cash transactions within a given month & Total Monthly Cash Expenses refer to the sum of all expenses paid out in cash during a specific month.

How to calculate Cash Burn Rate?

The Cash Burn Rate formula is a financial metric that measures the rate at which a company is spending its available cash reserves or funds is calculated using Net Burn = Total Monthly Cash Sales-Total Monthly Cash Expenses. To calculate Cash Burn Rate, you need Total Monthly Cash Sales (TMC) & Total Monthly Cash Expenses (TMCE). With our tool, you need to enter the respective value for Total Monthly Cash Sales & Total Monthly Cash Expenses and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search