KPI Tree

Ramp Metric

Expense Management

Monthly Burn Rate = Total Monthly Expenditure

Monthly burn rate is the total net cash expenditure per month, encompassing all operating expenses processed through Ramp. It is a critical metric for startups and growth-stage companies managing runway.

Full guide: definition, formula, and benchmarks
RampExpense Management

Burn Rate

Monthly burn rate is the total net cash expenditure per month, encompassing all operating expenses processed through Ramp. It is a critical metric for startups and growth-stage companies managing runway.

How to calculate burn rate

Monthly Burn Rate = Total Monthly Expenditure

Why burn rate matters for Ramp users

Burn rate determines how long your cash reserves will last and is a primary input to fundraising timing decisions. Unexpected increases in burn can accelerate runway depletion.

Ramp users get real-time visibility into burn rate rather than waiting for monthly financial close, enabling faster response to spending trends that affect runway.

Understand and act on burn rate with KPI Tree

Sync Ramp spend data to your warehouse and track monthly burn in KPI Tree. Build a burn rate tree decomposed by department, category, and recurring versus one-time spend.

Assign finance leadership ownership and set alerts when burn rate exceeds budget or when the implied runway falls below target months.

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