All terms
Finance
Net burn
Monthly cash outflows minus monthly cash inflows from revenue.
By Maya Okonkwo · Last updated May 19, 2026
In plain English
The real damage to your bank account each month after the customers pay you. This is what determines runway.
Example
Gross burn $33k, monthly revenue $11k → net burn $22k.
Formula
Net burn = Gross burn − Monthly revenue
Why it matters
Net burn is the runway-determining number. Cutting net burn (either by reducing gross burn or growing revenue) extends runway proportionally.
Common mistakes
- Counting unpaid invoices as 'revenue' when computing net burn — cash basis only