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Claim Proceeds Burn Rate Calculator

Restoration burns proceeds — manage runway.

$
$
$
$

Runway months

6.2

Monthly total burn

$565,000

Remaining proceeds after 12 mo

$0

How the math works

Total burn = resto + overhead + debt service. Runway = proceeds / burn.

$3.5M / ($450k + $45k + $70k = $565k) = 6.2 months runway. If restoration is 8 months, owner needs $1M additional liquidity.

How to Use

  1. Enter total claim proceeds.
  2. Enter monthly restoration spend.
  3. Enter overhead monthly spend.
  4. Enter debt service monthly.
  5. Read runway months.

Frequently Asked Questions

Why track burn?

Claim proceeds fund restoration plus debt service during downtime. If burn exceeds proceeds timeline, out-of-pocket cash required. Careful budgeting and draw scheduling prevents mid-restoration liquidity crises.

Typical burn?

Multifamily $20M restoration: $1-2M/mo hard costs. Commercial $10M: $500k-1M/mo. Plus monthly debt service (often deferred by lender but accrues). Plus ongoing property OpEx even during vacancy (insurance, taxes, utilities, security). All-in 10-15% higher than raw build cost.

Liquidity strategy?

Model month-by-month draws vs claim disbursements. Advance-funding on larger claims (carrier pays draw schedule, not reimbursement). Line of credit for gap funding. Negotiate debt service deferral with lender. Owner equity or pref reserve for worst case.

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