Include only entered recovery costs; any effect on future retention is uncertain.
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
Account for delivery time, review work and when you expect to be paid for each engagement. For this insurance agency calculation, use time sheets, engagement scopes and invoice ageing and a consistent definition of one policy sale.
- Lead costs: include the portion belonging to this policy sale or reporting period, and record where the value came from.
- Service time: include the portion belonging to this policy sale or reporting period, and record where the value came from.
- Renewal work: include the portion belonging to this policy sale 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.