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Service Level Credit Calculator

Work out service level credit instantly with clear inputs, formula shown and shareable results.

About Service Level Credit Calculator

Service level credits convert an availability shortfall into a fee rebate, usually in steps of 0.1 percentage points and capped at the monthly fee. The implied downtime figure is the reality check: 99.9% allows about 43 minutes a month, while 99.4% allows nearly four and a half hours.

Formulas

Shortfall steps

Steps = (Target availability - Achieved availability) / 0.1

Service credit

Credit = Monthly fee x min(100%, Steps x Credit per step %)

Worked example

With the default values below, Service Level Credit Calculator returns Service credit due of $12,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Monthly service fee
120,000
Target availability
99.9
Achieved availability
99.4
Credit per 0.1% below target
2

Results

Service credit due
$12,000.00
Credit as % of monthly fee
10.00%
Availability shortfall
0.500%
Implied downtime in a 30-day month
259.2

Step by step

  1. 1Values used
  2. 2Shortfall steps
  3. 3Service credit
  4. 4Service credit due= 12,000.00
  5. 5Credit as % of monthly fee= 10.00
  6. 6Availability shortfall= 0.500
  7. 7Implied downtime in a 30-day month= 259.2

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 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.
  • Indicative calculation. Credit regimes, measurement windows, exclusions and caps are contract-specific. Not legal advice.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

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

Indicative calculation. Credit regimes, measurement windows, exclusions and caps are contract-specific. Not legal advice.

Frequently Asked Questions

Are service credits a full remedy?

Rarely. They are usually the exclusive financial remedy for availability failures and are far smaller than the business loss, which is why termination triggers matter more.

Should planned maintenance count as downtime?

Only if the contract says so. Most agreements exclude agreed maintenance windows from the availability calculation.

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