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
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Check the units before you compare results.
- 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
Practice Net burn with real numbers
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