Completion Guaranty Burn Rate Calculator

Completion guaranties burn guarantor capital. This calculator sizes pace.

Remaining hard costs

Lender remaining commitment

Monthly budget

Months to complete

Overrun %

Guarantor burn

$2,720,000

Monthly burn if gap

$272,000

Estimated overrun

$1,020,000

How the math works

Total required = remaining HC × (1 + overrun). Burn = required − lender commitment.

Keep guarantor liquidity proof updated at each draw. Lenders that go quiet will sometimes demand new financial statements mid-construction when covenants wobble — having a current, reviewed package ready shortens the lender friction window that otherwise stalls draws.

How to Use

Enter remaining hard costs.
Enter current lender commitment.
Enter monthly budget requirement.
Enter months to complete.
Enter anticipated overrun %.
Read guarantor burn projection.

Frequently Asked Questions

When completion guaranty hits?

Lender stops funding (covenant breach, LTC breach, out-of-balance). GC default. Weather/schedule overruns. Cost overruns beyond contingency. Each triggers guarantor obligation to bring the project to CO.

Amount at risk?

Varies: capped guaranty (cost to complete up to X dollars) vs uncapped (all remaining cost). Uncapped guaranty on a complex development is effectively unlimited — $1-10M+ typical range.

Structural protections?

Cost-to-complete cap. Carve-out for costs above budget + contingency. Subcontractor default remedies. Lien waivers tracked monthly. GC bond. Each limits guarantor exposure to specific scenarios.

When does a lender negotiate vs foreclose?

Lenders calculate their net recovery from foreclosure (asset value minus legal, time, and sale costs) and compare to any workout proposal. If your offer nets the lender more than foreclosure, and you present it with clear sources of capital, most lenders will engage. Bring a credible sponsor, documented sources, and a timeline — vague asks get declined. Build the relationship before distress, not after.