Losses due to website failure – calculator

How to calculate loss caused by website Downtime

There’s a lot of talk about how the availability of your website affects your business in terms of income and brand reputation. Experts fling figures around and issue terrible warnings, but until you do the study on your own, you won’t know or understand the magnitude of how the numbers affect your firm.

In this article, we will walk you through the challenges related to website downtime and show you how to calculate its impact on your company’s income.

How does website downtime affect a business?

Estimating the cost of website downtime is among the most basic calculations when it comes to measuring risk, whether you run a SaaS (software as a service) or eCommerce site. Downtime is a concern if your company relies on its website or API to earn revenue, either directly or indirectly. However, we are all aware that every website, whether expected or unexpected, encounters some downtime.

Immediate consequences of downtime

The immediate impact of downtime is the simplest to quantify and detect; downtime represents a complete loss for most online enterprises during the outage. Downtime equals zero, meaning, 0 sales, 0 leads, 0 user transactions, and 0 ad income. You can assist offset some loss by scheduling scheduled downtime during periods of low usage. You may limit losses during unexpected outages by having a strategy in place and being aware of website downtime as soon as it occurs.

Potential losses

The obvious impact of downtime is visible and quantifiable. The challenge is estimating the future losses that disruptions may generate. Each scenario is unique, but the potential losses caused by an outage might affect future income in a variety of ways.

How to calculate loss caused by website Downtime?

For commercial websites, any downtime less than 100% results in economic losses. Downtime of 1% may appear insignificant, but it adds up to more than 7 hours each month.

Using this Downtime Loss calculator, you can calculate the losses incurred by your business due to website downtime:

1. Fill out these website parameters:
   • Conversion Rate
   • Average Basket Value
   • Website Traffic Visits (on a monthly and yearly basis)
2. Once you’ve added in these details, you will be able to see the number of conversions and income for one month as well as the entire duration of the online campaign (1 year)

Ultimately, this calculator will help you in calculating your losses due to website downtime. For example, an uptime of 99.99% will cause a downtime of 4.383 minutes. This would result in a loss of $0.30 per month and $3.60 per annum.

In Conclusion

Please bear in mind that while calculating downtime, we take into consideration all mistakes. For example, if you establish performance limitations for a monitor and one of those limits is reached, we may create an error for that scenario. Although your website is not truly offline, it will reflect a less-than-perfect uptime since the performance criterion was not satisfied. Understanding your risk and mitigating it by monitoring and having a strategy in place for outage recovery is critical to the reputation and income of your firm.

To calculate your losses due to website downtime accurately, don’t forget to use the calculator suggested above.