Formula
gross burn = total cash out
Gross burn
Gross burn is the total cash a company spends in a period, before counting any revenue.
Gross burn is the cost of running the company as it currently exists. Because it ignores revenue, it answers a different question from net burn: not how fast are we losing money, but how much does this machine cost to operate.
It is the number to look at when planning cuts, since it is the side of the equation you control.
Keep this number live
Plainhub computes gross burn from money you record in plain words, so it is current when you need it rather than the night before a board meeting.
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