Plain-language questions
Ask for budget burn rate per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Projects and time
Budget burn rate: formula and example.
Budget burn rate shows how much of the project budget has been used and how quickly. You divide the hours or costs spent by the budget and set that against the project's progress. That tells you early whether a project will stay within budget or overrun.
Budget burn rate formula
Hours (or costs) spent to date ÷ budget × 100%, compared with percentage complete
Worked example
An Acme Groothandel project has a budget of 400 hours. After six weeks 260 hours have been spent: 260 ÷ 400 × 100% = 65% of the budget, while the project is 50% complete. At this pace the whole project will take 260 ÷ 50% = 520 hours, 30% more than budgeted.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
If budget consumption runs ahead of progress, the project is heading for an overrun. If it runs behind, the project is on track or the work has slipped, so check the schedule as well. Review burn weekly on running projects so you can correct course or raise extra work with the client.
Pitfalls with budget burn rate
- Showing consumption without progress, so 65% used looks reassuring when only half the work is done.
- Logging hours late, so burn lags behind reality.
- Estimating progress by feel; agree for each work package when it counts as done.
SQL & DAX
Calculating budget burn rate in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT p.project_id,
p.budget_hours,
SUM(t.hours) AS hours_used,
ROUND(100.0 * SUM(t.hours) / NULLIF(p.budget_hours, 0), 1) AS budget_used_pct,
ROUND(SUM(t.hours) FILTER (WHERE t.entry_date >= CURRENT_DATE - interval '28 days') / 4.0, 1) AS hours_per_week_last_4w
FROM projects p
JOIN time_entries t ON t.project_id = p.project_id
WHERE p.status = 'active'
GROUP BY p.project_id, p.budget_hours
ORDER BY budget_used_pct DESC;Hours Used = SUM ( TimeEntries[Hours] )
Budget Used % = DIVIDE ( [Hours Used], SUM ( Projects[BudgetHours] ) )In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
What is the burn rate of a project?
Burn rate is the pace at which a project uses its budget, for example in hours or euros per week. The percentage of budget used is often called burn rate too. You compare it with progress to see whether the budget will last.
How do you calculate budget burn?
Divide the hours or costs spent to date by the total budget and multiply by 100%. Set that against the project's percentage complete. Dividing hours spent by percentage complete gives you a forecast for the total.
What should you do if a project burns through its budget too fast?
First find out where the extra hours are going: extra scope, setbacks or a budget that was too tight. Raise extra scope with the client and setbacks with the team. Then update the forecast so expectations are realistic again.
Further reading
- KPI libraryProject and time KPIs: formulas and examplesProject KPIs show whether hours are billable, budgets hold and projects finish on time. The data comes from your time tracking and project tools, linked to invoices from your accounting system.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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