Startups
Revenue increase needed to break even
The gap that must be closed before net burn reaches zero. It is numerically identical to current net burn, which is why a 50,000 burn reads equally as a 50,000 revenue target.
The Formula
Additional Monthly Revenue = Monthly Expenses - Monthly Revenue
The gap that must be closed before net burn reaches zero. It is numerically identical to current net burn, which is why a 50,000 burn reads equally as a 50,000 revenue target.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| dR | Additional monthly revenue required | currency per month | 90,000 minus 40,000 is 50,000 per month. Each 10,000 of it removes roughly one fifth of the monthly cash draw. |
| R* | Monthly revenue at break-even | currency per month | Equal to total monthly expenses, 90,000 here. Beyond it, net burn turns negative and the balance grows. |
What Each Symbol Means
dRcurrency per month
Additional monthly revenue required
90,000 minus 40,000 is 50,000 per month. Each 10,000 of it removes roughly one fifth of the monthly cash draw.
R*currency per month
Monthly revenue at break-even
Equal to total monthly expenses, 90,000 here. Beyond it, net burn turns negative and the balance grows.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate burn rate page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Burn Rate, filed under Business. Every number the guide produces comes from substituting into this one line.