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Cost of Downtime Calculator

Use this worksheet to determine how much your company loses during system failures. If you don't know the exact figures, just guess.

Employee Productivity

Annual Revenue of your Company:

$ (1)

Number of Employees:

# (2)

Calculate Average Revenue per Employee:
(Line 1) / (Line 2)

$ (3)

Determine Total Hours per year, per Employee:
(e.g. 40 hours x 50 weeks = 2,000 hours)

(4)

Calculate Avg. Revenue per Employee/hour:
(Line 3) / (Line 4)

$/hr (5)

System Restoration Cost

Total Labor Hours required to replace lost data and restore system

(6)

Per hour cost of Restoration Services:

$ (7)

Calculate Cost of Labor to restore system:
(Line 6) x (Line 7)

$ (8)

Lost Employee Productivity Cost

Total Hours the system is down:

(9)

% of employees (excluding systems staff) that are unproductive during downtime

% (10)

Calculate Cost of Employee Downtime:
[(Line 2) x (Line 5)] x (Line 9) x (Line 10)%

$ (11)

Lost Sales Opportunity Cost

Number of Sales per year

(12)

Estimated number of sales lost due to outage:

(13)

Calculate Sales Opportunity Loss:
[(Line 1) / (Line 12)] x (Line 13)

$ (14)

Lost Customer and Damaged Reputation Cost

Total number of customers last year:

(15)

Calculate Avg. Revenue per customer:
(Line 1) / (Line 15)

$ (16)

Number of customers lost due to system failure:

(17)

Calculate Customer and Reputation Cost:
(Line 16) x (Line 17)

$ (18)

Calculate Total Cost of Network Downtime:
(Line 8) + (Line 11) + (Line 14) + (Line 18)

$ (COST OF DOWNTIME)