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Construction Cash Burn Calculator

Large projects burn cash monthly. This calculator tracks net burn against reserves.

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%
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$

Monthly burn

$150,000

Runway months

3 yr 7 mo

Total equity available

$6,500,000

How the math works

Burn = monthly cost × (1 − loan draw share). Runway = equity ÷ burn.

Update burn and runway weekly during construction. A 10-15% cost overrun on a 50% equity deal can consume 3 months of remaining runway. Rebase reserves as soon as trajectory shifts.

How to Use

  1. Enter monthly hard + soft cost.
  2. Enter loan draw %.
  3. Enter equity in reserve.
  4. Enter equity contributed monthly.
  5. Read monthly burn and runway.

Frequently Asked Questions

Typical burn?

Varies wildly. Mid-size 200-unit lease-up: $300-500k/month. Small ground-up: $50-150k. Match reserves to 6-12 months of burn minimum.

What drives burn?

Equity share of cost (50% equity = 50% of monthly cost as burn). Lender's draw timing (slow draws = more equity front-loaded).

Running out?

Capital call to partners. Bridge loan. Contractor payment delays (damages relationship). Emergency equity auction. Plan reserves conservatively.

Who owns this risk — sponsor or lender?

Construction risks are typically shared: hard-cost overrun owned by sponsor (via completion guaranty), soft-cost and delay risks shared per contract, force-majeure excused but bears owner carry cost. Document risk ownership in the loan agreement and GC contract before closing. Disputes get expensive when roles are unclear. Institutional deals spell out every allocation in writing.

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