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Downtime Cost Calculator

What an hour of IT downtime costs you in lost revenue, idle staff, and recovery, and what you lose to it each year.

Example scenario—not a forecast or verified benchmark. Enable JavaScript to edit inputs, view charts, save locally and export your analysis.

Example inputs

Annual revenue
5,000,000
Operating hours per year
2,500
Share of revenue that stops when systems are down
40
Share of stopped revenue recovered later
50
Employees who cannot work during an outage
20
Average loaded hourly cost per employee
40
Productivity lost while down
70
IT recovery cost per hour (MSP, overtime)
250
Fixed cost per incident (data restore, credits, overtime catch-up)
2,000
Outages per year
4
Average hours per outage
6
Annual cost of a resilience upgrade (backup, failover, monitoring)
10,000
Expected reduction in downtime hours from that upgrade
60

Example results

Downtime costs you about $1,210 per hour and $37K a year (24 hours across 4 outages); a $10K/yr resilience upgrade would save $7,424 net.

Cost per hour of downtime
$1,210
Expected annual downtime cost
$37,040
Cost per outage
$9,260
Downtime hours per year
24 hrs
Availability during operating hours
99%
Net annual benefit of resilience upgrade
$7,424
Upgrade payback
6.9 mo

What stands out

Idle staff drives 46% of hourly cost

Each hour down costs $400 in lost revenue, $560 in idle staff, and $250 in recovery.

Downtime costs 0.74% of revenue per year

24 hours of outages a year (99.04% availability during operating hours) add up to $37K.

Resilience upgrade returns 74% a year

Spending $10K/yr avoids about $17K of downtime cost, paying back in 6.9 months.

Next actions

  1. Give staff a fallback mode (offline forms, mobile hotspot, cloud copies of key files) so work continues during outages.
  2. Cut average outage length below 3 hours with a written recovery runbook and a quarterly restore test.
  3. Fund the $10K/yr resilience upgrade: it pays back in 6.9 months.

Model assumptions & limitations

  • Revenue per operating hour = annual revenue / 2,500 hours; only 40% of it halts during an outage and 50% of that is recovered later.
  • Idle staff cost = 20 people x $40/hr x 70% productivity lost.
  • The 60% downtime reduction from the upgrade is your estimate; fixed per-incident costs are assumed unchanged.
  • Excludes reputational damage, contract penalties, and data-loss costs, so the figure is conservative.

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