Burn Rate
Etymology
A twentieth-century business coinage using "burn" as a metaphor for consuming cash the way an engine consumes fuel. "Rate" fixes it to a period, typically monthly. The word gained currency in the startup and venture world, where spending faster than you earn is normal and closely watched.
noun phrase · /burn rayt/
The speed at which a company spends its cash reserves, usually measured per month.
What it names
The pace of consumption behind the balance, so a founder feels money leaving, not just sitting.
Example
After the new hires, their burn rate jumped to two hundred thousand a month.
Related idea
Burn rate is the spending speed; runway is how long that speed can last given the cash on hand. Cutting burn rate is the fastest lever to extend runway when raising more money isn’t an option.
See also