# Revenue leakage calculator

https://salesbond.app/tools/revenue-leakage-calculator/
Updated: 2026-11-07

# Revenue Leakage Calculator

Estimate how much revenue your business earns but never collects. Enter revenue and the figures you know for five common leaks: discounts above policy, unbilled work or usage, failed payments, missed price increases at renewal and bad debt. See the total, the share of revenue, the biggest leak and what to fix first. Free.

Enter the revenue you billed in a year or a month, then fill in only the leaks you have figures for; the rest are left out. Percentages are numbers from 0 to 100. Results update as you type, and the figures stay in this browser until you start over.

## Revenue leakage example

A services company bills $2,000,000 a year. 40% of deals get an average discount of 15% where the policy allows 10%, 2% of delivered work is never invoiced, 6% of the card payments that bring 60% of revenue fail and half are recovered, 40% of renewals miss a planned 5% increase, and 0.5% of invoices are written off.

| Leak | Lost | Share |
| --- | --- | --- |
| Discounts | $47,059 | 2.35% |
| Unbilled work | $40,816 | 2.04% |
| Failed payments | $36,000 | 1.8% |
| Renewals | $20,000 | 1% |
| Bad debt | $10,000 | 0.5% |
| Total | $153,875 | 7.69% |

The company could collect $2,107,875 a year but collects $1,954,000: $153,875, or 7.69% of revenue, leaks away. The biggest leak is discounts above policy, so approval for larger discounts comes first.

## How each leak is calculated

- **Discounts above policy:** discounted revenue ÷ (1 − average discount) × (average discount − allowed discount).
- **Unbilled work or usage:** revenue ÷ (1 − unbilled share) × unbilled share.
- **Failed payments:** revenue paid by card × failure rate × (1 − share recovered).
- **Missed price increases:** renewing revenue × share renewed without it × the planned increase.
- **Bad debt:** revenue × share of invoices written off.

## Where to look for revenue leakage

Compare what was sold, what was delivered and what was billed: quotes against the discount policy, time sheets and usage logs against invoices, and renewal invoices against the new price list. Payment failures and write-offs are in your payment and accounting reports. Announce price increases with a [price increase letter](https://salesbond.app/tools/price-increase-letter/), charge interest on overdue invoices with the [late payment interest calculator](https://salesbond.app/tools/late-payment-interest-calculator/), and track lost customers separately with the [churn rate calculator](https://salesbond.app/tools/churn-rate-calculator/).

## Frequently asked questions

### What is revenue leakage?

Revenue leakage is money a business has earned but never collects: discounts given beyond what the policy allows, work or usage that is delivered but never invoiced, payments that fail, price increases that are not applied at renewal and invoices that are written off. It does not show up as a cost, so it often goes unnoticed.

### How do you calculate revenue leakage?

Add up each leak as an amount and divide the total by revenue. For discounts, take the list price value of discounted deals times the discount above policy; for unbilled work, revenue ÷ (1 − unbilled share) × that share; for failed payments, revenue paid by card × failure rate × the share not recovered; for renewals, renewing revenue × the share without the increase × the increase; and bad debt as written off.

### What causes revenue leakage?

Most leaks come from gaps between sales, delivery and billing: quotes with discounts nobody approved, contracts whose terms are not in the billing system, out-of-scope work done without a change request, expired cards, renewals handled by memory and invoices chased too late.

### How do I stop revenue leakage?

Fix the biggest leak first. Set discount limits with approvals, bill from the system that records the work, turn on automatic retries and card reminders, write price increases into contracts with renewal reminders, and check credit and chase invoices on a schedule. Then measure the same figures again each quarter.

### Is revenue leakage the same as churn?

No. Churn is customers or revenue you lose when customers leave. Revenue leakage is revenue from customers who stay that you fail to bill or collect. Failed card payments sit between the two: if they are not recovered, the customer is lost as well, which is called involuntary churn.

### Is what I type stored or sent anywhere?

No. The calculation runs in your browser and the figures are saved only in this browser so you can come back to them. Nothing you type is sent to SalesBond or anyone else. Click Start over to clear it.

Related tools: [churn rate calculator](https://salesbond.app/tools/churn-rate-calculator/), [price increase letter](https://salesbond.app/tools/price-increase-letter/), [late payment interest calculator](https://salesbond.app/tools/late-payment-interest-calculator/), [net revenue retention calculator](https://salesbond.app/tools/net-revenue-retention-calculator/). More on sales and running a sales team on the [SalesBond blog](https://salesbond.app/blog/) and the [home page](https://salesbond.app/).

## Official sources

- [Salesforce: What is revenue leakage?](https://www.salesforce.com/sales/revenue-lifecycle-management/revenue-leakage/) — billing errors, missed renewals, discounts and unbilled work.
- [Stripe: Revenue recovery](https://docs.stripe.com/billing/revenue-recovery) — failed subscription payments, retries and card reminders.
- [Wikipedia: Revenue assurance](https://en.wikipedia.org/wiki/Revenue_assurance) — finding and closing revenue leaks.
- [Wikipedia: Bad debt](https://en.wikipedia.org/wiki/Bad_debt) — invoices written off as uncollectable.

**Updated on Nov 7, 2026.** This calculator is for information only and is not tax, legal or payroll advice. Results are estimates from the figures you enter and show where to look first. They are not accounting figures; check the underlying data in your billing and CRM systems before acting on them.