Developed and maintained by ProWorkstack · Development and review process
See whether better failed-payment recovery could cover its fees and monthly costs.
Read the guide: Failed Payment Recovery: Estimate Extra Cash After Fees
Your results
Enter your inputs and select Calculate.
How this calculator works
Annual failed value = monthly billings × 12 × initial failure percentage. Additional recovered value = annual failed value × (target recovery − current recovery) ÷ 100. Net annual change subtracts the fee on positive additional recovered value and the additional annual fixed cost. Scenarios show absolute recovery percentage-point improvements capped at 100%.
Worked example
Monthly billings of 100,000 and an 8% failure rate yield 96,000 in annual failed value. Moving recovery from 40% to 65% adds 24,000 in recovered cash. A 5% fee and 150 monthly fixed cost leave 21,000 in net annual improvement.
Assumptions
Defaults are illustrative, not a provider benchmark or guarantee. Rates refer to payment value, not invoice count. Use the same failed-payment group of records and recovery window. Count each failed invoice once.
Interpreting your results
Recovered payment cash is not profit. This simple annual model excludes fulfillment costs, taxes, seasonality, recovery delays, retention effects and customer lifetime value. A target below current recovery produces a negative estimated change.
Calculation formulas
- annual_failed
monthly_billings * 12 * failure_pct/100- current_recovered
annual_failed * current_recovery_pct/100- target_recovered
annual_failed * target_recovery_pct/100- incremental
target_recovered - current_recovered- positive_incremental
MAX(incremental, 0)- net_incremental
incremental - positive_incremental * fee_pct/100 - monthly_cost * 12- Net annual change in recovered cash
net_incremental- Gross annual recovery change
incremental- Failed payment value annually
annual_failed- Failed value unrecovered at target
annual_failed - target_recovered- Annual fixed-cost break-even ceiling
positive_incremental * (1 - fee_pct/100)
Sources and definitions
Maintained by ProWorkstack · Last reviewed: 2026-10-04 · Development and review process