Collection Efficiency Calculator

Work out collection efficiency instantly with clear inputs, formula shown and shareable results.

About Collection Efficiency Calculator

Total collection efficiency divides all cash collected, including arrears, by the current month's demand — so it can exceed 100% in a good recovery month. Current efficiency strips out arrears and is the cleaner measure of book behaviour.

Formula

Collection efficiency

Total = (current + arrears collected) / current demand; current = current collected / demand

Worked example

With the default values below, Collection Efficiency Calculator returns Total Collection Efficiency of 99.400%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current Month Demandminimum 0: 50,000,000
Collected Against Current Demandminimum 0: 46,500,000
Arrears Collectedminimum 0: 3,200,000
Opening Arrearsminimum 0: 8,000,000

Results

Total Collection Efficiency: 99.400%
Current Demand Efficiency: 93.000%
Arrears Recovery Rate: 40.000%
Closing Arrears: $8,300,000.00

Step by step

1Values used
2Collection efficiency
3Total Collection Efficiency= 99.400
4Current Demand Efficiency= 93.000
5Arrears Recovery Rate= 40.000
6Closing Arrears= 8,300,000.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

Frequently Asked Questions

Why can efficiency exceed 100%?

Because arrears collected from earlier months are added to the numerator but not the denominator.

Which measure should be tracked?

Both. Total flatters a stressed book, while current efficiency reveals whether new delinquency is forming.