Your cost of non-quality

What discounts, shrinking scope, avoidable losses and escalations cost you every year.

Your portfolio over twelve months

ARR up for renewal over twelve months (€) Annual recurring revenue of the contracts expiring in the period. Period or comma for decimals, e.g. 1.5.

Discount granted at renewal (%) Average share of ARR given away as discount to secure the signature.

Downsell (%) Share of ARR lost to fewer seats, modules or scope at renewal.

Estimated avoidable churn (%) Share of ARR lost to cancellation that you believe upstream work could have prevented.

Team time

Team days spent on escalations, per year Customer Success, leadership and product days spent on accounts in crisis.

Cost of one team day (€) Average fully loaded cost. Starting value, replace it with your own.

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Estimated annual invoice

Invoice lines, with their basis and amount
Item	Basis	Amount
Renewal discounts		0
Scope reductions		0
Avoidable losses		0
Escalations		0
Annual total		0

Estimate

Breakdown, as a share of the total

Renewal discounts

Scope reductions

Avoidable losses

Escalations

What this calculation does not say

1. This is an estimate, not a measurement. The percentages entered are assumptions, and the 20% range is an order of magnitude, not a confidence interval.

2. One loss can land in two lines, for instance a discount followed by a downsell on the same contract. The calculation does not deduplicate.

3. The cost of a team day is a starting value. It includes neither opportunity cost nor the effect on team morale.

4. The share of churn judged avoidable is a judgment call. It depends on what you could have done earlier, and only an account-by-account review confirms it.