Downtime Cost Estimator
A downtime estimate combines the duration of an interruption with the business contribution lost during that time and direct recovery expenses. Use it for scenario planning, not as an accounting entry without review.
How to use this calculator
- Use a contribution or lost-output measure that matches the chosen time window.
- Check that the input values use the same units and reporting period before comparing scenarios.
- Change one assumption at a time to see which input drives the result.
Formula and method
Estimated impact = downtime hours × lost contribution per hour + recovery costs.
- 3 × €350 + €450 = €1,500.
- Avoid double-counting revenue and contribution, and do not count fixed costs as an incremental loss unless they change. Actual incident costs may include customer churn or penalties not entered here.
Worked examples
Worked example
Three hours at an estimated €350 contribution per hour plus €450 in recovery work.
3 × €350 + €450 = €1,500.
The modelled interruption impact is €1,500.
Understanding the result
The modelled interruption impact is €1,500.
Avoid double-counting revenue and contribution, and do not count fixed costs as an incremental loss unless they change. Actual incident costs may include customer churn or penalties not entered here.
Important notes
Use a contribution or lost-output measure that matches the chosen time window.
The displayed result uses the entered assumptions; validate important estimates against source measurements, specifications or qualified guidance.
Frequently asked questions
Should I enter revenue or profit?
Lost contribution is usually more useful than gross revenue; apply a consistent internal definition.
Does this estimate lost customers?
No. Add separately measured customer impacts rather than assuming a universal loss rate.
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This page provides a calculation tool plus explanatory information so you can understand what the result means and when the underlying method may not fit your situation.