Net Cash Burn
Definition
The Net Cash Burn KPI refers to the amount of money by which cash decreases in a set period.
Characteristics
- Measures how quickly your business is spending money (net-negative cash flow)
- If your Cash on Hand increases in a period your Net Cash Burn is negative (because you generate money)
Include | Don’t include |
Cash infolws (e.g. revenues) and cash outflows (e.g. costs) | Unusual positive cash flows such as received investments |
Calculation
CoH at beginning of period |
– CoH at end of period |
= Net Cash Burn |
Alias | Net Burn/Net Burn Rate/Cash Burn Rate |
Abbreviation | NCB |
Unit | Currency (Euro / Dollar / YEN …) |
Example
A company has started a month with 52.000 € COH at the end of the month it has 48.000 € left. Their Net Cash Burn is therefore calculated as follows:
+ 52.000 € |
– 48.000 € |
= 4.000 € |

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