Service Level Agreement Calculator

Calculate SLA penalty credits from uptime targets vs actual performance, with tiered credit models and business impact analysis.

Legal Disclaimer

This calculator provides general estimates only and does not constitute legal advice. Laws, regulations, and court procedures vary significantly by jurisdiction. Consult a licensed attorney in your area for advice specific to your situation.

Inputs

Monthly contract value ($)

SLA uptime target (%)

Actual uptime (%)

Credit model (0=Linear, 1=Tiered)

Penalty cap (%)

Revenue lost per hour of downtime ($)

Tab to move between fields

Results

SLA credit amount ($)

$1,500.00

≈ 12 pairs of sneakers

Credit percentage (%)15%

Allowed downtime (min/month)43.8

Excess downtime (hours)2.92

Business revenue impact ($)$2,920.00

Unrecovered loss ($)$1,420.00

Effective monthly cost ($)$8,500.00

Annual Contract Value120,000

Annual Credit Exposure18,000

How to Use This Calculator

Enter Service Fee and the financial penalty for SLA breaches (credits or refunds).
Set Uptime Commitment % and Penalty per Hour of downtime.
Add Response Time requirements and associated penalties.
Review maximum annual credit exposure — most vendors cap credits at 10–30% of monthly fees.
SLA credits are not a substitute for consequential damages — negotiate specific damage provisions for critical services.

What each input means

Monthly contract value ($): Monthly fee paid to the service provider.
SLA uptime target (%): Contracted uptime percentage. Common tiers: 99.9% (three nines), 99.95%, 99.99% (four nines).
Actual uptime (%): Actual measured uptime percentage for the billing period.
Credit model (0=Linear, 1=Tiered): 0 = Linear (1% credit per 0.1% below SLA), 1 = Tiered (industry-standard brackets: 10-30%).
Penalty cap (%): Maximum credit as a percentage of monthly fees. Industry standard: 25-30%.
Revenue lost per hour of downtime ($): Your business revenue impact per hour of provider downtime.

What each result means

SLA credit amount ($): Service credit owed by the provider based on the SLA breach.
Credit percentage (%): Percentage of monthly fee credited back.
Allowed downtime (min/month): Maximum permitted downtime per month under the SLA target. 99.9% = 43.8 min, 99.99% = 4.38 min.
Excess downtime (hours): Hours of downtime beyond what the SLA allows.
Business revenue impact ($): Your actual revenue loss from the excess downtime.
Unrecovered loss ($): Gap between your actual business loss and the SLA credit received.
Effective monthly cost ($): Your net monthly cost after SLA credits are applied.

How this is calculated

Worked example, using the default values

Identify Input Parameters
4 parameters
Monthly contract value ($) = 10000, SLA uptime target (%) = 99.9, Actual uptime (%) = 99.5, Credit model (0=Linear, 1=Tiered) = 1 = 6 input(s) provided
Calculate SLA credit amount
SLA credit amount = monthlyContractValue * (creditPct / 100)
1500 = $1,500
Calculate Credit percentage
Credit percentage
15 = 15%
Calculate Allowed downtime
Allowed downtime = allowedDowntimeHours * 60
43.8 = 43.8