Finance

Gross Burn

Gross burn is the total cash outflow in a period (ignoring inflows). It helps you see the true spending level.

Written by MetricKit EditorialReviewed by MetricKit Editorial ReviewUpdated 2026-01-23
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Definition

Gross burn is the total cash outflow in a period (ignoring inflows). It helps you see the true spending level.

Formula

Gross burn = total cash outflows

Measured as

Gross burn = total cash outflows

Operator takeaway

  • Tie Gross Burn to the same balance-sheet date, scenario, and decision memo you are using elsewhere in the model.
  • Document which claims, costs, or adjustments your team includes before comparing numbers across forecasts, covenants, or valuation work.

Next decision

  • Read Cash runway: how to estimate burn, break-even, and survival time if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
  • Decide whether Gross Burn belongs in cash planning, valuation, or debt monitoring so the number is used in the right model.

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