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Retention

Burn Multiple

How many dollars you burn to add one dollar of new recurring revenue.

The burn multiple is the cleanest measure of growth efficiency — lower is better. It exposes whether growth is earned or bought.

Example: $2M burned ÷ $1M net new ARR = 2.0. Rough guide: under 1 is elite, 1–2 is good, over 3 means you're buying growth far too expensively.

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