Burn Multiple

Burn Multiple compares Net Burn with Net New Annual Recurring Revenue for a reporting period.

In Rillet, the metric shows how much cash is consumed relative to recurring revenue growth during the selected period.

What This Report Shows

The Burn Multiple report displays values by reporting period.

The report includes the following elements:

• Net Burn The total cash consumed during the period.

• Net New ARR The change in ARR between the beginning and end of the period.

• Burn Multiple The ratio calculated using Net Burn and Net New ARR.

• Historical Trend A chart displaying Burn Multiple values across reporting periods.

The period selector determines which reporting periods are included.

How Burn Multiple Is Calculated

Burn Multiple measures how much cash is used to generate recurring revenue growth.

The calculation follows this formula:

$$\text{Burn Multiple} = \frac{\text{Net Burn}}{\text{Net New ARR}}$$

The system defines each value as follows:

• Net Burn The net cash consumed during the reporting period.

• Net New ARR The change in Annual Recurring Revenue between the beginning and end of the period.

This calculation allows you to compare cash consumption with recurring revenue growth in a single metric.

See Also

Learn more about efficiency and growth metrics in Rillet:

• Net Burn

• Magic Number

• Customer Acquisition Cost (CAC)

• LTV to CAC

• Recurring Revenue (ARR/MRR)