Downtime impact calculator
Make the business consequences of interrupted operations easier to discuss.
What could the interruption mean?
For 2 to 8 hours of disruption, the assumptions produce $5,260 – $9,040 in lost contribution plus extra spending. This is a scenario range, not a forecast or a probability interval.
| Component | 2 hours | 8 hours |
|---|---|---|
| Revenue interrupted | $7,200 | $28,800 |
| Less sales recovered later | $3,600 | $14,400 |
| Sales not recovered | $3,600 | $14,400 |
| Lost contribution | $1,260 | $5,040 |
| Additional recovery spending | $4,000 | $4,000 |
| Modeled financial impact | $5,260 | $9,040 |
Keep capacity and financial impact distinct
Lost contribution is unrecovered sales × 35% contribution margin. It accounts for variable costs avoided when sales do not occur. Confirm this margin and any additional spending with finance.
Staff capacity = 30 people × 70% productivity interrupted × duration. Its value uses $45 per person-hour. Salaried time already paid is not automatically additional cash expense, so it is not added to the financial total.
Additional recovery spending of $4,000 is included once at each duration, even if that duration is zero. Enter only incident costs not already represented elsewhere.
Turn the range into a recovery conversation
Validate time-sensitive processes, realistic workarounds and dependencies with business owners. Compare recovery options against the reduction in disruption they can credibly deliver, including implementation and operating costs.
This partial model excludes safety, reputation, legal or contractual consequences, backlog catch-up and long-term customer effects. These can change the decision even when the calculated amount is small.
Discuss recovery prioritiesAssumptions and calculation method
Revenue interrupted = normal hourly revenue × share interrupted × duration. Sales not recovered = revenue interrupted × (1 − share recovered later). Lost contribution = sales not recovered × contribution margin. Modeled financial impact = lost contribution + additional recovery spending.
Both durations use the same revenue, staffing, margin and recovery assumptions. The model assumes a constant effect during the event; it does not predict incident likelihood, nonlinear impacts or how quickly operations ramp back up. Do not add the intermediate revenue rows together.
Staff capacity and its value are separate from the financial total to avoid treating the same disruption as multiple additive losses. Figures are calculated before rounding; currency is displayed in whole USD, staff hours to one decimal place and disruption durations to two.
All default inputs are original fictional examples. Results are estimates from the entered assumptions, not industry benchmarks, historical KAISAN results or guaranteed financial outcomes.