Business Loss Estimator

Your business's total monthly income before any expenses are deducted. This includes all revenue streams such as sales, services, subscriptions, and any other income your business generates.

Expenses that continue even when your business is closed, including rent, insurance premiums, loan payments, utilities, and salaries for key employees who must remain on staff.

The percentage of revenue typically spent on costs that stop when business stops. Examples include inventory, raw materials, sales commissions, and direct labor costs. Most businesses have variable costs between 20-40% of revenue.

Extra costs incurred due to the business interruption, such as temporary office space, equipment rental, overtime labor, expedited shipping, or professional services needed to resume operations.

The total cost of employment including base wages, payroll taxes, benefits (health insurance, retirement), workers' compensation, and overhead costs. A 130% multiplier means each $1 in wages costs $1.30 total. Contractors typically have lower multipliers (80-100%), while full-time employees with benefits may have higher multipliers (140-180%).

The percentage of staff you would keep on payroll during the business closure. This ranges from 0% (complete shutdown) to 100% (work-from-home or essential operations). Most businesses retain 15-30% of staff for administrative work, customer service, or essential functions.

A factor that accounts for the fact that you don't save 100% of payroll costs when laying off employees. This accounts for unemployment insurance costs, potential severance payments, and the cost of rehiring and retraining. A factor of 0.85 means you save 85% of payroll costs, with 15% going to these additional expenses.

The time period after reopening when your business operates at reduced capacity before returning to normal revenue levels. This accounts for rebuilding customer relationships, restoring supply chains, retraining staff, and regaining market momentum.

Conservative: Gradual recovery with higher revenue losses (90% to 40% over 6 months). Moderate: Balanced recovery (75% to 0% over 6 months). Aggressive: Quick recovery with lower revenue losses (60% to 0% over 6 months). Choose based on your industry, customer relationships, and market conditions.

Financial penalties for breaking service contracts, missing delivery deadlines, or canceling commitments due to the business interruption. These may include liquidated damages, cancellation fees, or penalties for non-performance.

The total revenue your business would have earned during the interruption period if operating normally. This is calculated as monthly revenue × number of months of interruption.

The actual financial impact after accounting for costs that stop when business stops (variable costs) and payroll savings from reduced staffing. This represents the true economic loss to your business.

The comprehensive financial impact including net income loss, continuing fixed costs, employee retention costs, service contract penalties, and additional expenses. This is the total amount your business would lose during the interruption period.

The total estimated loss expressed as a percentage of your annual revenue. This helps put the interruption impact into perspective. For example, a 25% loss means the interruption would cost you one-quarter of your annual revenue.

A situation where your business operations are temporarily suspended or significantly reduced due to events such as natural disasters, equipment failures, supply chain disruptions, or other unforeseen circumstances that prevent normal business operations.

Fixed costs remain constant regardless of business activity (rent, insurance, salaries). Variable costs change with business volume (inventory, supplies, commissions). During business interruption, you continue paying fixed costs but stop paying variable costs.

These are preliminary estimates based on the information you provide. Actual losses may vary significantly based on specific circumstances, insurance policy terms, market conditions, and other factors. Always consult with insurance professionals and legal counsel for accurate assessments.