Glossary/Marketing Finance/Burn Rate
Marketing Finance
Burn Rate
The rate at which a company spends cash beyond what it brings in, usually stated per month.
By Brandon Mina·CEO, BrandPilot AI·Updated 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.