With the illustrative inputs below, the result is 1,500 .
Try this with your own numbersFormula and worked example
Recovery budget = cases × (refund + rework hours × hourly cost)
| Input | Example |
|---|---|
| Refund or credit per case | 80 |
| Rework hours per case | 2 |
| Loaded hourly cost | 35 |
| Cases in period | 10 |
| Calculated result | 1,500 |
Choose reliable inputs
Plan materials, travel and crew time before committing to a price. For this asphalt contractor calculation, use a completed job sheet, supplier quotes and a crew schedule and a consistent definition of one paving job.
- Material delivery: include the portion belonging to this paving job or reporting period, and record where the value came from.
- Equipment: include the portion belonging to this paving job or reporting period, and record where the value came from.
- Preparation: include the portion belonging to this paving job or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
What does resolving a complaint actually cost?
Include only entered recovery costs; any effect on future retention is uncertain.
What if this input changes?
If refund or credit per case rises by 10%, this example changes by 80 . This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.