Gross Burn

Date created: Feb 16, 2019  •   Last updated: Jun 10, 2021

What is Gross Burn?

A company's Gross Burn is the total cash spent on operations. These costs typically include all salaries, rent, and other overhead as well as interest and taxes. This metric is often confused with Net Burn, which is a measure of negative cash flow, and includes revenue and expenses.

Alternate names: Operating Expenses

Formula

ƒ (COGS + Salaries and Overhead + Depreciation and Amortization + Other Operating Expenses + Interest and Taxes)

Gross Burn

Start tracking your Gross Burn data

Use Klipfolio PowerMetrics, our free analytics tools, to monitor your data.

Choose one of the following available services to start tracking your Gross Burn instantly.

How does this work?

Follow the steps below in order to get your instant metric

Step 1 - Choose your preferred service
Step 1Choose your preferred service
Step 2 - Create your free Klipfolio PowerMetrics Account
Step 2Create your free Klipfolio PowerMetrics Account
Step 3 - Connect your data and get your metric instantly
Step 3Connect your data and get your metric instantly

What is a good Gross Burn benchmark?

The median monthly cash burn is $175K for companies making between $2.5M and $10M ARR.

Monthly Cash Burn by ARR Scale

Monthly Cash Burn by ARR Scale

OpenView, 2020
arrow-right icon
arrow-right icon

More about this metric

Gross Burn includes expenses such as manufacturing costs, salaries, contractors, sales commissions, employee benefits, marketing and advertising, transportation and travel, amortization and depreciation, rent, repairs, and taxes.

In most cases, Gross Burn is reported as a monthly number.