Definition · burn
Gross burn
Gross burn is total monthly cash operating outflow before offsetting revenue, used to understand the cost base and runway pressure. For gross burn, the useful boundary is the source cash view, timing horizon, owner, liquidity exposure, and operating decision before payment timing, runway, or financing options change.
Also known as gross burn rate, gross cash burn, gross monthly burn
Why it matters
Understanding gross burn matters because cash decisions are time-sensitive. Teams need to know when money moves, which balance changes, who owns the next action, and what can still be changed before liquidity tightens. Pluvo computes gross burn from connected operating-expense data and ties changes back to the cost drivers behind them.
In practice
Liquidity example
Finance teams use gross burn when they need to understand cash timing before a decision is made. A team might compare expected receipts, payroll, vendor payments, and debt obligations to decide what action is needed this week.
Pluvo example
Pluvo computes gross burn from connected operating-expense data and ties changes back to the cost drivers behind them.
In practice, teams should define gross burn with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.
Understanding gross burn matters because cash decisions are time-sensitive. Teams need to know when money moves, which balance changes, who owns the next action, and what can still be changed before liquidity tightens. Pluvo computes gross burn from connected operating-expense data and ties changes back to the cost drivers behind them.
A strong workflow for gross burn separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.
Pluvo computes gross burn from connected operating-expense data and ties changes back to the cost drivers behind them.
FAQ
What is gross burn?
Gross burn is total monthly cash operating outflow before offsetting revenue, used to understand the cost base and runway pressure. For gross burn, the useful boundary is the source cash view, timing horizon, owner, liquidity exposure, and operating decision before payment timing, runway, or financing options change.
What is the difference between gross burn and net burn?
The boundary for gross burn differs from related terms by scope, source data, time period, and decision use. In this glossary, it covers gross burn: total monthly cash operating outflows, how it differs from net burn, and what it reveals about the cost base, so teams should compare those boundaries before using it in reporting or planning.