burn rate

American  

[burn reyt] / ˈbɜrn ˌreɪt /

noun

Business.

1. Also called net burn rate.  the negative cash flow for an enterprise, calculated as the monthly sum of revenue minus operating expenses.

   Investors aren’t concerned about the company’s high burn rate since its growth is also explosive.

2. Also called gross burn rate.  the operating expenses of an enterprise, sometimes presented as the length of time a startup investment will last without additional income if the monthly operating expenses remain the same.

   At the current burn rate, the company can fund two more quarters before it’s forced to seek fresh sources of cash inflow.

---

Etymology

Origin of burn rate

First recorded in 1960–65; burn ¹ (in the sense “consume rapidly”) + rate ¹ ( def. )

Example Sentences

A $400,000-a-month burn rate would have depleted Winston’s $25.25 million contract in about five years.

From MarketWatch • Nov. 20, 2025

The burn rate is how much you’re spending per month.

From Barron's • Nov. 9, 2025

Much like a startup trying to control monthly spending before it can achieve profitability, there are ways to slow your own burn rate.

From The Wall Street Journal • Oct. 10, 2025

Mike Rose, head of Manchester-based gaming publisher No More Robots, said many firms were spending more money than they were generating from sales and now needed to get this "burn rate" down.

From BBC • Nov. 14, 2023

The California startup reported it had more than $16 billion in cash at the end of the first quarter, but analysts have said the current cash burn rate could rapidly deplete that.

From Reuters • Jul. 21, 2022