Gross Burn

Gross burn is a financial metric that measures total cash outflows in a given period (usually monthly) without considering any cash inflows such as revenue or funding. It helps assess how quickly a company is spending its available cash and is key to evaluating financial sustainability.

Expenses Included in Gross Burn

In general, gross burn includes the following types of cash expenses:

• Salaries and benefits.

• Rent and utilities.

• Marketing and advertising.

• Technology and infrastructure costs.

• Other operating expenses.

How Gross Burn Is Calculated in Rillet

Rillet automatically calculates gross burn by including journal entries that meet both of these criteria:

1. Credit line item: The GL account subtype is Bank or Credit Card.

2. Debit line item: The GL account subtype is not one of the following:

   • Accounts Receivable

   • Other Current Asset

   • Other Assets

   • Revenue

   • Non Operating Income

   • Customer Deposits

   • Equity

   • Bank

   • Credit Card

If both criteria are met, the transaction is included in the gross burn calculation.

See Also

Learn more about related financial metrics:

• Net Burn

• Cash Runway

• Cash Revenues

• ARR/MRR (Recurring Revenue)

See Also:

Learn more about burn and cash flow metrics:

• Net Burn

• Cash Runway

• Cash Revenues