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Efficiency Calculator

Metrics that VCs love: Burn Multiple, Magic Number, Rule of 40, and more.

1. Burn Multiple

2. Magic Number

3. Rule of 40

4. Hype & Scale

📊 Efficiency Scorecard
Burn Multiple ℹ️Net Burn / Net New ARR
Magic Number ℹ️Net New ARR / S&M Spend
Rule of 40 Score ℹ️Growth % + Profit %
Hype Ratio (Val/ARR)
Rev per Employee

📢 Ad Space — Reserved for future monetization

Understanding Efficiency

In the current funding climate, "Growth at all costs" is dead. Investors demand efficient growth.

Burn Multiple

Proposed by David Sacks (Craft Ventures). It’s the ultimate measure of how much cash you are burning to create growth. Ideally, stay under 2x in early stages and under 1x as you scale.

Rule of 40

The standard for private equity and late-stage SaaS. If (Growth% + Profit%) > 40, you are an elite company commanding a premium valuation.

📥 Premium Financial Templates

Download investor-ready financial models, cap table templates, and pitch deck outlines built for Indian startups.

Frequently Asked Questions