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Maverick Spend Percentage Calculator

Work out maverick spend percentage instantly with clear inputs, formula shown and shareable results.

About Maverick Spend Percentage Calculator

Maverick spend is buying outside contracted suppliers, and its cost is the price premium paid on that spend. Because the premium is embedded in the price paid, the leakage is the premium divided by one plus the premium — not the premium applied to the spend.

Formulas

Maverick spend

Maverick % = Off-contract spend / Total category spend x 100

Value leakage

Leakage = Off-contract spend x Premium / (1 + Premium)

Worked example

With the default values below, Maverick Spend Percentage Calculator returns Maverick spend of 18.37%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Spend placed outside contracted suppliers
180,000,000
Total category spend
980,000,000
Average price premium on off-contract spend
14
Off-contract transactions
6,400

Results

Maverick spend
18.37%
Value leakage from the price premium
$22,105,263.16
Average off-contract transaction value
$28,125.00
Compliant spend
81.63%

Step by step

  1. 1Values used
  2. 2Maverick spend
  3. 3Value leakage
  4. 4Maverick spend= 18.37
  5. 5Value leakage from the price premium= 22,105,263.16
  6. 6Average off-contract transaction value= 28,125.00
  7. 7Compliant spend= 81.63

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 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

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

Frequently Asked Questions

Why does maverick spend happen?

Usually because the compliant route is slow, the catalogue is incomplete, or the requisitioner does not know a contract exists. It is rarely deliberate.

What reduces it fastest?

Making the compliant channel the easiest one: complete catalogues, fast approval, and blocking non-catalogue orders where a contract exists.

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