This invention provides a tool for reliability evaluation and performance analysis of an IP backbone network by using the network packet loss ratio as the main measurement. A queuing model and algorithm is presented for calculating packet loss at congested interfaces or links. A reliability model is presented for considering network hardware component failures such as router failures, ATM switch failures, and physical link failures. Based on the measurement and models presented, a network reliability and performance (NetRAP) apparatus calculates IP network reliability and performance measurements. The NetRAP apparatus uses the network topology, a traffic matrix, and the reliability parameters of a network as inputs and calculates the network packet loss ratio and sigma score, and provides a list of heavily congested links under non-failure or different single failure conditions.