Recovery ROI Calculator

How to read the result

The expected recovery before commission applies an indicative industry-average recovery rate for the debt's age. The older the account, the lower this rate — debt that has been overdue for more than six months has, on average, only a 40% recovery rate; over twelve months it falls to around 22%.

After deducting the commission, the net recovery is what you'd keep. The net advantage adds back the cost of the time you've already spent chasing the account in-house — because that time is a sunk cost either way, but referring means you stop spending it.

When does referral make sense?

Almost always — but especially when:

• The debt is over 60 days old and you've already sent reminders
• Your own attempts to contact the debtor have gone unanswered
• The debtor is still trading and has assets to satisfy the debt
• The amount is large enough to justify professional pursuit

Referral is rarely advisable when the debt is genuinely and legitimately disputed (as opposed to the debtor simply claiming a dispute to delay payment), or when the debtor is already in liquidation with no prospect of recovery.

See also: Debt age impact calculator — how recovery falls month by month; Net recovery estimator — your take-home after commission.

Recovery rates are indicative industry averages. Actual recovery depends on the debtor, documentation, jurisdiction and other factors. This is not financial or legal advice. No commission is charged on accounts where nothing is recovered.