Work out contract coverage percentage instantly with clear inputs, formula shown and shareable results.
Contract coverage is the share of addressable spend governed by a formal agreement. The expiring share is the companion metric: high coverage with a third of it expiring within twelve months means a heavy renewal workload and near-term price exposure.
Contract coverage
Coverage % = Spend under contract / Total addressable spend x 100
Expiring share
Expiring % = Expiring contract value / Spend under contract x 100
Because spend outside a contract has no agreed price, terms, service level or liability position. It is where both cost leakage and legal risk concentrate.
Not quite. Very low-value one-off purchases are cheaper to buy on standard terms than to contract for, so 85-95% is the practical target.