net burn rate

How to Calculate Net Burn Rate?

The formula for calculating net burn rate is straightforward:
Net Burn Rate = (Starting Cash Balance - Ending Cash Balance) / Number of Months
For example, if your starting cash balance is $500,000 and your ending cash balance after six months is $200,000, your net burn rate would be:
Net Burn Rate = ($500,000 - $200,000) / 6 = $50,000 per month

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