idiom
Burn Rate
BURN RAYT
/bɜːrn reɪt/Listen
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Syllable breakdown
Burnrate
Dictionary meaning
Originally a startup term describing the rate at which a company spends its cash reserves before becoming profitable; informally used to describe how quickly someone spends money.
History and origin
Silicon Valley / startup finance terminology, popularized in the 1990s dot-com era
Examples
- At their current burn rate, the startup has only six months of runway left.
- With his burn rate on entertainment, he'll need a raise just to break even.
Synonyms: cash burn, spend rate, runway depletion
Pronunciation tips
Now used colloquially beyond startups. 'Runway' = how long you can survive at the current burn rate (cash / monthly burn = months of runway).
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