# Net burn

> Net burn is a cash and runway metric, calculated as Operating and investing cash out − cash in, excluding financing inflows. The one that matters for runway. Equity raised or debt drawn is not negative burn.

Source: https://lopifi.com/glossary/net-burn
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is net burn?** Net burn is a cash and runway metric, calculated as Operating and investing cash out − cash in, excluding financing inflows.

## Formula

`Operating and investing cash out − cash in, excluding financing inflows`

## Note

The one that matters for runway. Equity raised or debt drawn is not negative burn

- **Category:** Cash & runway
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** equity, runway