Business Pitch Dictionary by pitch.dog
Cash flow & liquidity · Core

Burn rate

Also called: cash burn, monthly burn

ELI5

Cash consumed per unit of time, often monthly.

Used in conversation

“How are we defining burn rate in this deck?”

Pitch context

You will see “Burn rate” in financial models, budgets, board packs and investor materials when the discussion reaches cash flow & liquidity.

Why it matters: In cash flow & liquidity, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

  • RunwayBurn rate is the pace at which cash is consumed; runway estimates how long available cash lasts at an assumed burn and cash-flow path.
  • Cash burnThe search label “cash burn” can route to both entries.
  • Monthly burnThe search label “monthly burn” can route to both entries.
Sources & evidence · 9

Direct term-level sources and supporting source families.