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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMarketing FinanceBurn Rate

Marketing Finance

Burn Rate

The rate at which a company spends cash beyond what it brings in, usually stated per month.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Burn rate is the rate at which a company spends cash beyond what it brings in, usually stated per month. Gross burn is total monthly spending, while net burn subtracts incoming cash. Startups track burn rate closely because, together with cash on hand, it determines how long the business can operate before needing new funding.