# What is Burn Rate ?

Saw this question on BURN RATE on Oliver Lehmann. What is it and how do we calculate it?. Thanks for any help.

### Burn Rate

Burn rate = AC/EV

Burn Rate=1/CPI

Where CPI is cost performance index.

A project was assessed and the following Earned value data have been found: PV: \$750,000 EV: \$750,000 AC: \$900,000 What is the Burn rate of the project?

o 1.20

o 1.10

o 1.00

o 0.83

Burn Rate =900,000/750,00=1.2

### burn rate

ok So Burn Rate Formula is AC/EV ?

What is Burn rate in other word ?

What it is usefull for ?

thanks

### Burn Rate

its the rate you are burning through your money.  Its common term for CPI,  The CPI stands for Cost Performance Index, which is equal to Earned Value / Actual Cost. You'll need to know CPI. For the Earned Value questions

### Burn Rate - EV/AC (CPI) OR AC/EV

I tought the burn rate was also CPI or EV/AC

But Oliver Lehmann Q87/175

A project was assessed and the following earned value data have been found: PV: \$750,000 EV: \$750,000 AC: \$900,000 What is the burn rate of the project?87
o 1.20
o 1.10
o 1.00
o 0.83

Monitoring and controlling Answer: 1 Reference: Project Management, A Systems Approach to Planning, Scheduling and Controlling by H. Kerzner, 10th edition, page 647,

IT'S AC/EV

Can you help ?

### CPI

in that question the burn rate is .83  Oliver is wrong. You get what you pay for I guess. I only used prep question I paid for.

### EVM

Doesn't matter, What matters is what the earn value formulas are, what they mean and when to apply each.

### ok but, if the exam ask what

ok but, if the exam ask what is the burn rate.. you are in  trouble..

I am wondering if burn rate is EV/ac  or AC/ev

Admin can help on this one ?

There is many contradictions on the internet,  Lehmann says AC/EV

### Burn Rate

ok, I did some checking for you, and talk to a few other PMPs I work with.  The consensus was PMI would mostly have Burn Rate = 1 / CPI

for butn rate.   AC/EV isn't consider as the propert formula.  the Lehmann answer would be correct.   It was also assume they would not test on the term burn rate, but good to know.

### ok but be carefull here

ok but be carefull here

You said  Burn Rate = 1/CPI   and AC/EV  is'int correct

This is the same thing !!    1/CPI  or AC/EV   = SAME !

EX:

AC = 5

EV = 6

CPI = 6/5 = 1,2

1/CPI     OR   1 / 1,2     = 0,8333

AC/EV  OR    5/6         = 0,8333

SO   burn Rate  is NOT CPI,    BURN Rate is like Lehman says   AC/EV   OR 1/CPI

### burn rate is the inverse of the CPI

Yes, Burn rate is not CPI, it is the inverse of CPI.  Lehman is correct

nice post

### The formula what you are

The formula what you are using to calculate the burn rate seems to different one than that of what I have seen in one the math article which was published in https://www.resumesservicesreviews.com/ writing service blog. I was little confused when I see your formula and the one what I know through that article which one is right one.