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Event planning Late Invoice Carrying Cost: worked example

Estimate an internal financing cost associated with delayed receipt.

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Event planning / event economics
Answer

With the illustrative inputs below, the result is 98.6301 .

Try this with your own numbers

Formula and worked example

Carrying cost = invoice × annual rate × delay days / 365

Example figures
InputExample
Unpaid invoice amount10,000
Days delayed30 days
Annual cash carrying-cost assumption12 %
Calculated result98.6301

Choose reliable inputs

Include preparation, delivery and post-production rather than shoot or event time alone. For this event planning calculation, use production schedules, vendor quotes and editing logs and a consistent definition of one event.

  • Coordination hours: include the portion belonging to this event or reporting period, and record where the value came from.
  • Vendors: include the portion belonging to this event or reporting period, and record where the value came from.
  • Travel: include the portion belonging to this event 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.

Can I charge this amount to the customer?

This tool estimates internal cost only. Contract terms and local law determine whether any fee may be charged.

Uses simple interest and a 365-day year; this is not a lawful late-payment fee calculation.

Compare a different assumption

What if this input changes?

If unpaid invoice amount rises by 10%, this example changes by 9.863 . 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.

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