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How to calculate Net burn

The Net burn formula, with plain worked examples you can check yourself.

Net burn = E − R

Worked examples

E = 40 · R = 10Net burn = 30
E = 70 · R = 50Net burn = 20
E = 70 · R = 10Net burn = 60

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Funding & Growth.

Related terms

Venture capitalBurn rateIPOPivotSeed fundingRunway

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