How much would it cost to recreate it if you had to, and how much money would you lose during the downtime?

When companies cannot access their data, they cannot perform normal business functions – something that they take for granted everyday. They may believe that just like getting hit with lightening, the chances of something happening to them are slim, and it would be a prudent financial decision to just cross that bridge when they get to it, and pay for “fixing” it when something does happen.

Losses in the areas of labor, revenue, and service all contribute to the total cost of an outage. A good starting point for evaluating these factors is to collect statistics on both the duration and associated costs of past outages as recorded by your accounting team.

Use the following equation to calculate the average labor cost of an outage:

LABOR COST = P x E x R x H
P = number of people affected
E = average percentage they are affected
R = average employee cost per hour
H = number of hours of outage

As companies depend more and more on computer applications for day-to-day business operations, the cost of downtime has increased.

The simplest way to calculate potential revenue losses during an outage is with the equation:

GR = gross yearly revenue
TH = total yearly business hours
I = percentage impact
H = number of hours of outage
Service costs are rarely zero.

Of course, you don’t have to do this in your head. We will do it for you. Go to our micro site at and fill in the quick form. We will then provide you with a free report that shows you how much it really does cost you.