The Sales Capital Cost Replacement Calculator

Our SALES and CAPITAL COST REPLACEMENT CALCULATOR is more vital than ever…

Due to our current circumstances around combating the COVID-19 outbreak, it’s totally reasonable to expect, or at least prepare for, a global slowdown – and even recession. As such, the importance of prompt payment, PLUS maximising efficiency – in every department of your business – can determine the outcome between financial survival – or loss. Put simply, every business needs to be a prompt “solution provider” to their clients, (and prospective clients) while making as few mistakes as humanly possible throughout the process.

Following are a few examples of how many dollars are required from future sales to replace lost capital caused by poor decision-making and inadequate operating procedures.

Invoice w/off ($) A/C Bad debt w/off ($) Cost of sale ($) Net Profit % on w/off Sales to replace w/off ($) Cost of processing a mistake ($) Sales to replace cost of processing ($)
100 100 90 10% 900    
100 100 90 10% 900 25 625
  100   4% 2400 25 625
  100   4% 2400 50 1250

Note: It is important to note, these figures do include all the costs involved in actually processing an account for write off. The calculator merely identifies the cost of replacing capital lost when the account is written off.

The actual cost for processing a mistake may vary according to your business and the amount of work required to process the mistake. Whatever the cost which has been calculated for costing purposes, 100 per cent of the cost is used as the cost basis for this calculation.

Try It! Calculate Your Costs

Select one of our three calculators below.

Based on a Net Profit of 10%

Invoice ($) Cost of sale ($) Sales to replace w/off ($) Sales to replace processing w/off cost ($) TOTAL ($)
100.00 90.00 900.00 250.00 1,150.00
200.00 180.00 1,800.00 250.00 2,050.00
300.00 270.00 2,700.00 250.00 2,950.00
400.00 360.00 3,600.00 250.00 3,850.00
500.00 450.00 4,500.00 250.00 4,750.00
600.00 540.00 5,400.00 250.00 5,650.00
700.00 630.00 6,300.00 250.00 6,550.00
800.00 720.00 7,200.00 250.00 7,450.00
900.00 810.00 8,100.00 250.00 8,350.00
1,000.00 900.00 9,000.00 250.00 9,250.00

Based on a Net Profit of 10%

YTD Total W/off's ($) Cost of sales ($) Sales to replace w/off ($) Cost of processing W/off's ($) Sales to replace cost of processing W/off's ($) TOTAL ($)
100.00 90.00 900.00 2,500.00 25,000.00 25,900.00

Based on a Net Profit of 10%

Cost of processing 100 claims ($) Sales to replace cost of processing claims ($)
2,500.00 25,000.00