Downtime Cost Calculator

Calculate the financial impact of system downtime including lost revenue, labor costs, and opportunity costs.

Input Parameters

Calculation Results

Calculation Formula

Total Downtime Cost = (Downtime Hours × Hourly Revenue) + (Downtime Hours × Hourly Labor Cost) × (1 + Additional Costs%)

Where:
Downtime Hours: Hours of system unavailability
Hourly Revenue: Average revenue lost per hour
Hourly Labor Cost: Cost of labor during recovery
Additional Costs: Percentage of revenue lost as other costs

Revenue Lost:

$0.00

Labor Costs:

$0.00

Additional Costs:

$0.00

Total Downtime Cost:

$0.00

Downtime Cost Calculator Usage Guide

Learn how to use the Downtime Cost Calculator to assess the financial impact of system downtime

How to Use This Calculator

  1. Enter the number of hours your system was unavailable during the downtime period.
  2. Input the average hourly revenue your business would have generated during that time.
  3. Specify the average labor cost per hour associated with the downtime (including recovery efforts).
  4. Adjust the additional costs percentage if needed (default is 10% which represents lost opportunity costs).
  5. Click the "Calculate" button to see the estimated total cost of downtime.

Understanding the Results

The calculator provides a comprehensive breakdown of your downtime costs:

  • Revenue Lost: Direct income lost during the downtime period.
  • Labor Costs: Expenses related to personnel working during the recovery process.
  • Additional Costs: Percentage of revenue allocated to other indirect costs.
  • Total Downtime Cost: The comprehensive financial impact of the downtime.

Practical Applications

This calculator is particularly useful for:

  • IT departments assessing server or network downtime
  • Business continuity planning
  • Investment justification for redundancy systems
  • Insurance claims documentation
  • Financial reporting for operational disruptions

Example Scenario

For example, if your system was down for 4 hours, with an average hourly revenue of $5,000 and labor costs of $1,000 per hour, the calculation would be:

$20,000 (Revenue Lost) + $4,000 (Labor Costs) + $400 (Additional Costs) = $24,400 total downtime cost