Translation service Service Recovery Budget
Recovery budget = cases × (refund + rework hours × hourly cost)
Gather project time logs, licence invoices and retainer scopes. Include translator time, review, and formatting. The starting figures are examples. Replace them with your own records.
Formula 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
Include software licences, delivery time, revisions and ongoing support when costing a project. For this translation service calculation, use project time logs, licence invoices and retainer scopes and a consistent definition of one translation job.
- Translator time: include the portion belonging to this translation job or reporting period, and record where the value came from.
- Review: include the portion belonging to this translation job or reporting period, and record where the value came from.
- Formatting: include the portion belonging to this translation 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.