SLA Credit Calculator

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

About SLA Credit Calculator

Service credits are calculated from the shortfall against the committed availability, typically in steps with a cap at 100 percent of the monthly fee. The important observation is that credits rarely compensate for business impact: 0.5 percent of a month is 3.6 hours of outage, for which a 25 percent credit on a modest monthly fee is trivial next to lost revenue.

Formula

Service credit

shortfall = committed - actual; credit % = shortfall / 0.1 x credit per tenth, capped at 100%; credit = monthly fee x credit %

Worked example

With the default values below, SLA Credit Calculator returns Service credit due of $3,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Monthly service feeminimum 0: 12,000
Committed availabilityaccepts 50–100 %: 99.9 %
Actual availabilityaccepts 0–100 %: 99.4 %
Credit per 0.1% below commitmentaccepts 0–100 %: 5 %

Results

Service credit due: $3,000.00
Credit as a share of the monthly fee: 25.0%
Shortfall against the commitment: 0.500%
Excess downtime in the month: 216.0 min

Step by step

1Values used
2Service credit
3Service credit due= 3,000.00
4Credit as a share of the monthly fee= 25.0
5Shortfall against the commitment= 0.500
6Excess downtime in the month= 216.0 min

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.

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

Frequently Asked Questions

Do credits have to be claimed?

Almost always, and usually within a short window such as 30 days. Providers rarely apply them automatically, so unclaimed credits are simply forfeited.

Are credits a meaningful remedy?

They are a pricing adjustment, not compensation. For genuinely critical services the answer is architectural redundancy across providers rather than a stronger SLA.