On a fixed-fee or capped matter, you track budget burn — fees incurred against the budget — to avoid blowing the cap. Percent consumed and projected overrun are the early-warning numbers.
The example
$32k incurred of a $40k cap.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Burn 32k/40k | 80% |
| 3 | Remaining | → $8,000 |
The formula
The formula:
How it works
How it works:
- Total fees to date with SUMIF on the matter, divide by the budget for percent burned.
- Remaining = budget − fees to date — the headroom left.
- Project the finish:
fees_to_date / percent_completeestimates total cost at the current pace. - Flag when burn outpaces progress — 80% spent at 60% done signals an overrun.
Burn vs progress is the real signal. Spending 80% of budget isn’t alarming at 80% complete — it’s alarming at 50% complete. Track fees-burned against work-complete and project the landing: fees_to_date / percent_complete. If that projection exceeds the cap, raise it with the client before the next phase, not after the bill.
Try it: interactive demo
Fees to date, budget, % complete.
Variations
Remaining budget
Headroom:
Projected at completion
At current pace:
Over/under flag
Will it bust the cap?:
Pitfalls & errors
Burn vs progress. Percent spent only alarms relative to percent done.
Fees, not hours. Burn a fixed-fee budget in dollars, not raw hours.
Zero progress. Projecting with 0% complete gives #DIV/0! — guard it.
Practice workbook
Frequently asked questions
How do I calculate matter budget burn in Excel?
How do I project the final cost?
When should I worry about an overrun?
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