Delay Cost Calculator

Turn schedule slips into clear, decision-ready cost numbers. Model burn, fixed fees, and revenue loss. Use results to prioritize fixes and protect deadlines today.

Calculator

Controls display formatting only.
Use days or hours from the menu.
Hours convert using hours/day.
Used for hour-to-day conversion.
Billable or effective work hours.
People directly blocked by the delay.
Include benefits and payroll taxes.
Management, admin, facilities, tooling.
Rent, subscriptions, idle equipment.
Liquidated damages or SLA penalties.
Applied across total delay days.
Set 0 for no maximum.
One-time charge due to the delay.
If launch or delivery is postponed.
Used to convert revenue into profit.
Approximates time-value loss of delayed cash.
Expedite fees, rework, overtime, travel.
Contingency on the subtotal for uncertainty.
Reset

Example data table

Scenario Input summary What you learn
Software release slip 5 days, 4 people, 45/hr, 6 hrs/day, 25% overhead Total delay cost and daily burn estimate
Client delivery penalty Penalty 150/day, margin 30%, revenue 1,000/day Penalty + lost profit impact on total
Expedite recovery Other costs 250, risk buffer 10% Contingency effect on the final figure
These rows are illustrative examples. Your real inputs should reflect your staffing model, contract terms, and revenue timing.

Formula used

This calculator estimates total delay cost as a sum of direct and indirect impacts:
Total = Labor + Overhead + Fixed + Penalties + LostProfit + Opportunity + Other + Contingency
  • Delay days = delay (hours) ÷ hours/day, or delay (days).
  • Labor = delay days × team size × hourly rate × productive hours/day.
  • Overhead = labor × overhead percent.
  • Fixed = delay days × fixed daily cost.
  • Penalties = per-day × delay days (optionally capped), or flat amount.
  • Lost profit = (revenue/day × delay days) × margin percent.
  • Opportunity ≈ (lost profit + penalties) × (annual rate/365) × delay days.
  • Contingency = subtotal × risk buffer percent.
The opportunity term is a practical approximation. For longer delays, consider a cashflow model with discounting by payment milestones.

How to use this calculator

  1. Enter the delay duration and select days or hours.
  2. Fill in team size, productive hours, and loaded hourly rate.
  3. Add overhead percent and any fixed daily costs.
  4. Choose penalty mode and provide contract values if applicable.
  5. Estimate revenue delayed and profit margin for profit impact.
  6. Set a discount rate and optional one-time recovery costs.
  7. Use risk buffer to reflect uncertainty, then calculate.
  8. Download CSV or PDF to share and document decisions.

What delay cost includes

Delay cost combines direct spend and value erosion. Direct spend includes idle labor, overhead, and fixed daily charges. Value erosion includes penalties, lost profit from postponed revenue, and a time value adjustment. If you enter hours, the tool converts to days using your hours-per-day setting, keeping every component consistent. For example, 16 hours with 8 hours per day equals 2 delay days. Fixed daily costs often include subscriptions, rentals, and standby vendors that continue even when work stalls quietly.

Estimating labor burn rate

Labor cost is computed as delay days × team size × loaded hourly rate × productive hours per day. Productive hours should reflect effective work, not paid presence. For many teams, 5 to 7 productive hours is realistic. Overhead is applied as a percentage of labor to represent coordination, facilities, and tooling. Typical overhead ranges from 15% to 40%, depending on the organization.

Revenue timing and margin

When delivery shifts, revenue may be delayed rather than lost. The calculator treats the delay as postponed revenue per day and converts it to lost profit using your margin. A 30% margin means each 1,000 of delayed revenue implies 300 of delayed profit. The discount rate approximates the cost of waiting for that profit. Using 10% annually yields about 0.027% per day, which grows with longer delays.

Penalties and contract exposure

Many contracts include liquidated damages or service credits. Choose per-day to scale with duration, or flat for one-time charges. If a cap exists, entering it prevents unrealistic penalty growth. Pair penalties with margin impacts to see the full exposure of missing a deadline, not just the contractual line item. If penalties start after a grace period, model only the chargeable days.

Using results to prioritize work

Use the cost per day to rank mitigation options. If a fix costs less than one day of delay, it is usually justified. Add other one-time costs for expedited shipping, overtime, or rework. Apply a risk buffer when inputs are uncertain, and export a CSV or PDF to support approval discussions. Review the component shares to identify whether labor, profit, or penalties drive the outcome.

FAQs

Does the calculator treat delayed revenue as lost revenue?

No. It models revenue as delayed for the entered number of days, then estimates the profit impact using your margin. If revenue is not affected, set revenue delayed per day to 0 and focus on labor, overhead, and penalties.

How do I choose productive hours per day?

Use effective working time spent on the impacted work, not total paid hours. Many knowledge teams average 5–7 productive hours daily. If you track timesheets or cycle time, use that data for a realistic figure.

What overhead percent is reasonable?

Overhead varies by industry and maturity. A common planning range is 15% to 40% of labor, covering management, admin, facilities, and tools. If you already use a fully loaded hourly rate, keep overhead lower to avoid double counting.

When should I use a penalty cap?

Use a cap when your contract limits total damages or credits. Enter the maximum amount to prevent per-day penalties from exceeding the contractual ceiling. If no cap exists, leave it at 0 and the calculator will not limit penalties.

What does the annual discount rate represent?

It approximates the time value of money for delayed profit and penalties. You can use your cost of capital, hurdle rate, or an internal planning rate. For short delays the effect is small, but it grows with duration.

How can I run scenario comparisons quickly?

Change one assumption at a time, such as team size or delay days, and recalculate. Export each result as CSV to compare totals and component shares. This approach helps justify mitigation spending and highlight the biggest cost drivers.

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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.