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Apollo IT Services

Downtime Cost Calculator

What Does Downtime Cost Your Business?

When systems go down, you pay twice — in idle staff and in lost revenue. Adjust the numbers to match your business and see the real cost.

Estimated cost of a single outage

$0
Lost employee productivity $0
Lost revenue $0
Cost per hour of downtime $0

Where the cost comes from

Lost productivity 0% Lost revenue 0%

Estimated cost per year

$0

Estimates cover productivity and revenue only — they don’t include overtime for recovery, missed deadlines, lost data or reputation damage, so the true cost is usually higher. Proactive monitoring, backups and a tested recovery plan typically cost a fraction of a single serious outage.

How the Downtime Cost Calculator Works

This downtime cost calculator estimates the two direct costs every outage creates: the time your people can’t work, and the sales you can’t make. It uses the numbers you enter above:

  • Lost employee productivity = number of employees × average hourly cost per employee × the percentage of staff who can’t work × the length of the outage.
  • Lost revenue = revenue per hour × the length of the outage. Leave it at zero if an outage doesn’t stop you from taking orders.
  • Cost of a single outage = lost productivity + lost revenue. Multiply that by your outages per year to get the annual estimate.

Use a fully loaded hourly cost per employee (wages plus benefits and payroll taxes) for the most realistic result, and be honest about how many people are truly idle when email, files or your line-of-business application are unavailable.

A Worked Example

Here’s how the math plays out for a hypothetical 20-person office. These are illustrative numbers, not benchmarks, so plug in your own above.

If the average fully loaded cost per employee is $40 an hour and 75% of staff can’t work during an outage, lost productivity is 20 × $40 × 75% = $600 for every hour systems are down. If the business also brings in $500 an hour in sales it can’t process, the total is $1,100 per hour.

A four-hour outage would then cost about $4,400. Three outages like that in a year adds up to roughly $13,200, before counting any of the hidden costs below. Running your own figures through the downtime cost calculator is the quickest way to see whether prevention is worth the investment.

What the Estimate Doesn’t Include

The calculator deliberately stays conservative. It doesn’t count overtime spent catching up, missed deadlines, the cost of recovering or recreating lost data, regulatory exposure for healthcare and financial businesses, or the damage an outage does to customer trust. For most businesses the real number is higher than the one shown.

How to Reduce the Cost of Downtime

Most outages are preventable or can be made much shorter. The biggest levers are:

Proactive monitoring and patching

So small problems are fixed before they take systems down. That’s the core of our managed IT services.

Tested backups and a written recovery plan

So you can restore quickly when something does fail. See backup and disaster recovery.

Strong security

Because ransomware is one of the most disruptive causes of downtime. See our cybersecurity solutions and CISA’s StopRansomware guidance.

Want help putting a number on your risk and a plan to lower it?

Contact Apollo IT Services for a free consultation.

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