Gross Burn Rate

Gross Burn Rate represents the total operating expenses a company incurs in a given month before considering revenue inflows. It highlights how much cash a business is spending to maintain operations.

Gross Burn Rate Formula: Total Monthly Operating Expenses

Gross burn rate is critical for understanding runway — how long a company can sustain its operations before requiring additional capital — especially for pre-revenue or early-growth startups where cash management dictates strategic flexibility.