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Do expected service credits erase the contract margin?
Include incident-related credits and remediation in annual contract contribution.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Annual managed-service fee
- $600,000
- Annual normal delivery cost
- $420,000
- Credit-triggering incidents / year
- 4
- Monthly fee credited / incident
- 20 %
- Extra remediation cost / incident
- $8,000
- Annual prevention investment
- $15,000
Annual contract contribution after SLA costs
Example result only, not a forecast or promise.
- Annual service credits
- $40,000
- Annual extra remediation
- $32,000
- Contribution before SLA & prevention costs
- $180,000
What to do with this result
Review credit caps and incident correlation against the contract; the model is an expected-cost scenario, not a guarantee of SLA compliance.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Annual contribution = annual fee − normal delivery cost − incidents × (annual fee / 12 × monthly credit share + remediation cost) − prevention investment.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Use collected revenue and fully loaded delivery costs consistently. Released time is capacity, not automatically a cash saving.