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Service Vendor Leakage Estimator

Estimate annual and monthly savings from service vendor leakage levers and generate a finance-ready memo.

This tool is educational and operational. It is not legal, engineering, or financial advice.

Processed in-browser. Nothing is stored.

Inputs

Required

$

Required

Formatting only.

Spend split

%

Percent of total vendor spend that is labor.

%

Percent of total vendor spend that is billed materials/parts (as invoiced).

Overtime

%

Percent of labor spend billed as overtime or after-hours work.

%

Percent of overtime you believe can be avoided with better scheduling, approval rules, or scope controls.

%

Premium portion above base rate (for example: 50% premium for time-and-a-half).

Materials markup

%

Estimated average markup currently embedded in billed materials.

%

Target average markup after negotiation or controls.

Trip charges

Average number of trip/dispatch charges billed monthly.

$

Average cost per trip/dispatch charge.

%

Percent of trip charges you can reduce via bundling, thresholds, or rules.

%

Percent of total spend you believe is unapproved scope creep, add-ons, or misc fees.

$

Cost to implement controls (process, tooling, internal time, vendor changes). Used for payback.

Used in memo output.

Optional context you want included in the memo.

Assumptions

  • This is an estimate. Use conservative inputs and validate by invoice and work order trend after controls are installed.
  • Savings levers can overlap. Keep assumptions conservative to avoid double counting.
  • Overtime savings estimates premium reduction only; it assumes work still occurs at base rate.
  • Materials markup savings assumes billed materials include markup and estimates the difference between current and target markup.

Fix validation errors to generate results.

Results

Enter inputs and click Generate.

How to use

  1. Enter vendor spend, split, and leakage assumptions using conservative values.
  2. Review the savings breakdown and baseline transparency tables.
  3. Copy or download the memo and share it with finance or operations stakeholders.
  4. Update assumptions after controls are installed to validate impact.

What results mean

Estimated annual savings aggregates the four leakage levers into a single annual estimate.

Savings percent of spend compares estimated annual savings to total vendor spend.

Payback period divides implementation cost by monthly savings to show time to recoup controls.

Common pitfalls

  • Using aggressive assumptions without validating invoice or work order evidence.
  • Double counting savings across overlapping levers (overtime, markup, and trip charges).
  • Skipping the payback input when leadership expects a cost to implement controls.

Definitions

Overtime premium: The portion of overtime cost above the base labor rate.

Materials markup: The uplift applied to billed materials or parts compared to the vendor cost.

Trip charge: A fixed dispatch fee billed per site visit or service call.

Unapproved add-ons: Charges for scope that was not formally approved or negotiated.

Change log

v1.0 (2026-01): Latest release