is burn rate the same as expenses 
it s the same if you re calculating the gross burn rate you must also factor in whatever revenue the company may be generating if you want the net burn rate however the bottom linethe burn rate is an important metric for any company but it s particularly important for startups that aren t yet generating revenue it tells managers and investors how fast the company is spending its capital the burn rate is used to pinpoint when a company will be going into debt and is expressed as the company s financial runway a company has no choice but to lower its structural costs by reducing what it is spending on staff housing marketing and or technology if its burn rate is too high 