Recover Time Cost Calculator

How much does down time cost your business?

The recovery process

The recovery process represents the amount of time it takes to recover data either locally or from the cloud due to data loss (data loss could be the result of a virus, employee error, or some other type of system disruption).

Downtime Costs

The cost of downtime is first determined by the total cost of each employees’ time. This includes the employees’ wage, overhead costs (subscription costs, benefits, etc.), and revenue lost as a result of the employees not working (sales opportunity loss). It could also include an ecommerce site that is down and no longer generating sales as a result of system downtime.

Total Cost to Business

The total cost to the businesses is determined by multiplying the amount of downtime by the cost of downtime.

For example a 50 person company may have an average wage per hour of $50 and an overhead cost of $20 per hour. Say the system was down for 1 day and lose 8 hours of productivity then the cost would be $28,000 for one day.

50 people x ($50 hr + $20 overhead costs) = $70 per person = $3,500 per hour x 8 hours

So 50 people for one day = -$28,000

If these people were all revenue raising ie sales people and need to generate say $250 per hour each ($2,000 a day) you would need to add lost sales costs of $100,000 for one day.

50 people $28,000 staff and overhead time, plus lost sales 50 people x $250 per hour x 8 hours = -$100,000.

So in a revenue raising environment total cost of being down for one day is -$128,000

In a real life experience an Australia accounting firm was hit with the AGL version of the CryptoLocker scam. They had deployed the Datto solution hoping they would never need it but within a week had been hit by the scam. Using this system they were back up and running within 15 minutes. As accountants they understood costs and that downtime for their 120 employees cost the firm $25,000 per hour. Their old recovery system would have taken 6 hours to restore so in this one event they saved $150,000. What would it cost your organisation?

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