# How to calculate burnrate?

Wikipedia says Burn rate is a synonymous term for negative cash flow but I neither agree nor believe that is formalized. A company could need turnaround from losses to gains and if the term is mentioned, can it be calculated? Can a time variable be 2 years, 5 years, more or less to calculate "burnrate"? Another definition was Burn rate is usually quoted in terms of cash spent per month.. I'm not sure if it's defined unless we know time limits for a project or company.

"Burn rate" is a measure of "spend rate" relative to cash on hand. So if you have $10 million dollars, and you spend$1 million dollars a month, you will "burn through" your cash in ten months, at which time your company will either "take off," get new financing, or go under.