See your true net burn and what it means for the next 12 months. Enter MRR, churn, and monthly expenses — we'll project your cash trajectory, burn multiple, and the SaaS Magic Number that investors care about.
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Burn Multiple = Net Burn ÷ Net New ARR. It measures capital efficiency — how many dollars you burn for each dollar of new recurring revenue. David Sacks popularized it in 2020. Under 1.0 is exceptional, 1–1.5 is good, 2+ is a red flag, 3+ means you're burning cash faster than you're growing.
Magic Number = (Quarterly ARR growth × 4) ÷ (Sales & Marketing spend over the prior quarter). Above 1.0 means you should pour more fuel on growth; 0.5–1.0 is healthy; below 0.5 suggests your sales engine is inefficient. This tool estimates an annualized version.
Net burn = total monthly operating expenses (gross burn) minus recognized revenue. If you spend $60k/mo and collect $25k MRR, your net burn is $35k/mo. That's the rate at which cash actually leaves the bank.