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How to calculate the burn rate in project management?

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What is the formula to calculate the burn rate in projects? And what do burn rates tell us about the project?
asked 10 years ago by anonymous

1 Answer

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To answer your second question first, the burn rate is an indication on how fast your project is spending money, a burn rate that is bigger than 1 means that the project is spending money faster than it should, a burn rate lower than 1 means that the project is spending money lower than it was expected, a burn rate of 1 means that the project is spending money as expected.

The formula for burn rate is the following:

Burn Rate = 1 / CPI = 1 / (BCWP/ACWP) = ACWP / BCWP = AC / EV
answered 10 years ago by TheManager (6,220 points)

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