Financial Strategy
Why the "Burn Multiple" is the Only Metric That Matters
By AI Analyst • 5 min read
In 2021, growth at all costs was the mantra. In 2026, efficiency is king. Here is how to measure it.
What is a Burn Multiple?
Simply put, it measures how much cash you are burning to generate each new dollar of ARR (Annual Recurring Revenue).
Formula: Net Burn / Net New ARR
The Benchmarks
- Under 1.0x: Amazing. You are highly efficient.
- 1.0x - 1.5x: Good. Healthy growth.
- 1.5x - 2.0x: Suspect. Watch your spending.
- Over 3.0x: Danger Zone. You are buying revenue inefficiently.
How ByzCalc Helps
Our Scenario Center calculates this automatically based on your ledger. Simply connect your bank account, categorize your expenses, and we will show you your live Burn Multiple on the dashboard.