Downtime Cost Calculator

Estimate the financial impact of downtime from revenue loss, labor cost, fixed recovery cost, and SLA credits.

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Inputs

hours
$/hr
$/hr

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Results

Estimated Downtime Cost
Cost per Minute$100.00
Revenue Loss$10,000.00
Labor/Productivity Cost$3,000.00

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Assumptions

  • Costs are user-entered estimates and may not capture reputational or long-term churn impact.
  • SLA credits are modeled as an added business cost.
  • Calculations run locally in your browser.

Sensitivity preview

Downtime Duration -10%: Estimated Downtime Cost $13,700.00

Downtime Duration Current: Estimated Downtime Cost $15,000.00

Downtime Duration +10%: Estimated Downtime Cost $16,300.00

Formula: Total cost = downtime hours * (hourly revenue loss + hourly labor cost) + fixed recovery cost + SLA credits.

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About this Downtime Cost Calculator

Downtime has direct and indirect cost: lost revenue, staff time, recovery work, credits, and customer impact. This calculator gives a simple incident-cost estimate.

Who this calculator is for

  • IT and SRE teams justifying reliability work.
  • Business owners estimating outage exposure.
  • Finance and operations teams comparing prevention costs with outage risk.

When to use it

  • Estimate cost of a recent outage.
  • Build a reliability investment case.
  • Compare downtime scenarios with different durations.

How to use this calculator

  1. Enter the outage duration.
  2. Enter hourly revenue loss and hourly labor or productivity cost.
  3. Add fixed recovery costs and SLA credits if applicable.
  4. Review total estimated cost and cost per minute.

Key assumptions

  • Costs are user-entered estimates and may not capture reputational or long-term churn impact.
  • SLA credits are modeled as an added business cost.
  • Calculations run locally in your browser.

Accuracy and testing

Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.

View accuracy page

How this calculator works

Total cost = Downtime hours x (hourly revenue loss + hourly labor cost) + fixed recovery cost + SLA credits.
Total cost = downtime hours * (hourly revenue loss + hourly labor cost) + fixed recovery cost + SLA credits.

Inputs explained

Downtime hours

The elapsed service impact duration.

Revenue loss

Estimated sales, transactions, or subscription impact per hour.

Labor/productivity cost

Internal staff time or productivity loss per hour.

SLA credits

Service credits, customer credits, or penalties related to the incident.

Understanding your results

The total is a planning estimate, not an accounting record. Use consistent assumptions when comparing scenarios.

Example scenarios

SaaS outage

2.5 hours at $4,000 revenue loss and $1,200 labor cost per hour plus $2,000 recovery cost equals $15,000 before credits.

Key Features

  • Instant Calculation
  • Private & Secure
  • Mobile Optimized

Tips & Best Practices

  • Use ranges for hard-to-measure costs such as churn and support load.
  • Pair this with the uptime SLA calculator to turn availability targets into downtime budgets.
  • Separate customer-facing outages from internal-only incidents when reporting.

Frequently Asked Questions

Should I include customer support cost?
Yes, if it is material. Include it in hourly labor cost or fixed recovery cost depending on how your team tracks it.
Does this model churn?
Not directly. Add a fixed recovery or customer-impact estimate if you want to include churn or reputation impact.
Is this financial advice?
No. It is a simple planning calculator and should be reconciled with your own finance and incident data.