Free calculator · 4 minutes
Find out how much profit your business leaks every year.
Enter eight numbers from your last financial year. You will see, in dollars, what discounting, rework, slow-paying customers and out-of-date pricing cost you, and which leak to fix first.
No sign-up to use it. Australian dollars, ex GST.
Your numbers
Example figures are filled in so you can see how it works. Replace them with yours.
Revenue less direct costs such as materials, subcontractors and direct labour.
What is left after all expenses. Rough figures are fine.
Include the cost of redoing work and any bad debts.
From invoice to money in the bank.
Enter 36 if it has been three years or more.
Assumptions you can change
Use your overdraft or loan rate.
You are leaking about
$119,195
every year, before you fix anything.
- Of revenue
- 9.9%
- Of current net profit
- 142%
Where it goes
- Out-of-date pricing$44,000
- Rework and write-offs$36,000
- Discounting$31,304
- Slow-paying customers$7,890
Separate from the leaks above: about $78,904 of your cash is tied up waiting for customers to pay beyond 14 days. You can release it once by tightening terms.
Fix these first
Out-of-date pricing: $44,000 a year
Raise prices on new quotes next month, starting with your most in-demand service. Give existing customers 60 days notice. Review prices every six months from now on.
Rework and write-offs: $36,000 a year
Log every redo for 30 days with its cause. Two or three causes usually make up most of the cost. Fix the biggest cause first, and put scope changes in writing before the work starts.
Discounting: $31,304 a year
Set a ceiling. Nobody except you approves a discount above 5%, and every discount has to buy something back, such as faster payment, a bigger order or a referral. Track the dollars you give away each week.
What winning it back is worth
+$47,678 extra profit a year
11.0% new net profit margin
An estimate to size the prize, not a promise.
Get the 30-day leak plug pack
Four ready-to-use pieces to win the money back: a discount policy, a price-rise letter, a payment reminder sequence and a 30-day plan.
Want the biggest leak fixed with someone who has done it before?
On a free call we go through your numbers, confirm where the money is leaking and agree the first move to win it back.
Free 45-minute strategy call. No pitch.