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Finance
Startup Burn Multiple Calculator
See if your startup is capital-efficient — the David Sacks way.
Inputs
$
$
Result
Burn multiple
2.00x
Efficiency rating
Suspect (2–3x)
David Sacks' burn multiple framework
About this tool
The burn multiple = net burn ÷ net new ARR. Enter both to see whether your startup is amazing, great, OK or in danger of running out of runway.
What it does
- •Instant burn multiple
- •Efficiency rating
- •David Sacks benchmark scale
- •Ideal for board reviews
Use cases
- ★Board updates
- ★Fundraising prep
- ★Runway planning
FAQ
What's a good burn multiple?
Under 1x is amazing; 1–1.5x great; 1.5–2x OK; 2–3x suspect; above 3x is a red flag.
Do I use ARR or MRR?
Either works as long as burn and new revenue use the same period (usually quarterly).