Measure recoverable amounts after fees, expenses, and offsets. Allocate proceeds fairly between parties. See clear outputs with simple charts today.
| Case | Gross + Other | Costs Applied | Net Pool | Insured | Carrier Net | PV Net Pool |
|---|---|---|---|---|---|---|
| A: Pro-rata, no discounting | 8,200.00 | 2,015.00 | 6,185.00 | 238.27 | 5,946.73 | 6,185.00 |
| B: Made-whole, higher probability | 5,000.00 | 1,450.00 | 3,550.00 | 1,000.00 | 2,550.00 | 3,420.00 |
| C: Custom split, discounting | 2,400.00 | 520.00 | 1,880.00 | 752.00 | 1,128.00 | 1,776.00 |
Subrogation outcomes usually track three primary inputs: claim paid, deductible, and total recovery collected. In this calculator, Gross + Other combines cash recovery with salvage or supplemental proceeds. Comparative fault reduces collectible value by a direct percentage, keeping the model transparent for file notes.
Typical internal handling costs range from 0.5% to 2.0% of recovery on high-volume portfolios, while complex matters may exceed 5% when vendor spend is included. Track expenses separately to compare vendor efficiency across similar claim types.
Recovery expenses, attorney fees, and lien offsets can materially change the net pool. This calculator supports a cost cap expressed as a percentage of recovery plus interest, which is useful when internal policy limits fees relative to collectible value.
The attorney fee basis can be applied to adjusted recovery alone or to recovery plus interest. For example, at 20% fees and 5% annual interest over 180 days, fee-on-interest can increase total fees by roughly 0.5%–1.0% of principal, depending on reductions.
Allocation choices affect customer outcomes and carrier reporting. Pro-rata splits the net pool by each party’s outlay proportion, while made-whole reimburses the deductible first. A custom split can reflect negotiated allocations or jurisdiction-specific practice.
Use the insured reimbursement cap when rules limit reimbursement above the deductible or when prior payments already covered part of the insured’s share. This keeps downstream letters consistent with policy constraints.
Portfolio planning improves when you separate “book value” from “likely value.” The calculator converts the net pool into an expected net pool using a recovery probability. For example, a 70% probability turns a 10,000 net pool into 7,000 expected value for pipeline forecasting.
Present value uses an annual discount rate and months-to-collect. At 8% discount and 6 months, present value is approximately 96% of nominal. This supports prioritization when two cases have similar face value.
If a reinsurer participates, gross carrier share may not equal the carrier’s net benefit. The calculator computes reinsurer share and carrier share (net) using a participation percentage to help align subrogation reporting with ceded arrangements.
Use the Plotly views to validate your narrative: the waterfall highlights how deductions reduce recoverable value, and the allocation donut clarifies who receives proceeds. Export CSV for audits and PDF for file-ready summaries.
Net Pool is the amount available for allocation after reductions, interest, applied costs, and prior reimbursements are accounted for. It is floored at zero to avoid negative allocations.
Use made-whole when policy, statute, or practice requires reimbursing the insured’s deductible before the carrier receives proceeds. Pro-rata is used when proportional sharing is required or preferred.
Use a probability that reflects collectible likelihood based on liability, coverage, venue, and asset checks. It only affects expected value fields, not the base allocation, so you can compare scenarios cleanly.
They estimate present value to reflect time cost of money. Longer collection periods reduce PV, which helps prioritize cases with faster recoveries even if nominal values are similar.
Cost cap limits applied costs to a percentage of recovery plus interest. It can model internal policy limits or vendor fee constraints, improving comparability across files with different cost profiles.
Reinsurance participation splits the carrier’s gross share into reinsurer share and carrier net share. It does not change the insured share; it clarifies how carrier benefit is distributed after allocation.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.