How much cash a company loses per month.
Burn and runway travel together: runway = cash ÷ burn. The discipline is watching net burn monthly and knowing your zero-cash date before it knows you.
Example: $120,000 lost over 3 months = $40,000/month burn.
FAQ
What is Burn Rate in simple terms?
Burn and runway travel together: runway = cash ÷ burn. The discipline is watching net burn monthly and knowing your zero-cash date before it knows you.