Net Burn Rate Calculator

Formula

The formula to calculate the Net Burn Rate (NBR) is:

\[ NBR = TP - GBR \]

Where:

$NBR$ is the Net Burn Rate ($)
$TP$ is the Total Profit ($)
$GBR$ is the Gross Burn Rate ($)

What is Net Burn Rate?

Net Burn Rate (NBR) is a financial metric that represents the rate at which a company is losing money. It is calculated by subtracting the gross burn rate from the total profit. This metric is crucial for startups and businesses to understand their cash flow and sustainability.

Example Calculation

Let's assume the following values for an example:

Total Profit (TP) = $50,000
Gross Burn Rate (GBR) = $30,000

Using the formula:

\[ NBR = 50000 - 30000 = 20000 \, \text{\$} \]

The Net Burn Rate is $20,000.