Business Income and Extra Expense Calculator

Total revenue from product sales after returns and allowances, before any deductions.

Any additional operating income not captured in net sales (for example, scrap sales, tooling charges billed to customers).

Total billings for the year, including billed and accrued unbilled work in progress (WIP). For law firms, include contingency fee matters at expected recovery value.

Income not directly from professional services, for example, interest on trust accounts, sublease income, referral fees.

Total interest earned on loans, mortgages, and investment securities.

Revenue from account maintenance fees, transaction charges, wire transfers, safe deposit boxes, and other service fees.

All other income not captured above, for example, insurance commissions, brokerage income, gains on loan sales.

Revenue from commercial sale of drugs, devices, diagnostics, or other products, net of returns and discounts.

Recurring royalty streams and upfront or milestone licensing fees on intellectual property.

Gross tuition and mandatory fees charged to students, net of institutional scholarships and fee waivers.

Operating grants from federal, provincial, or state governments for instructional purposes.

Revenue from housing (residence halls), dining services, parking, athletics, and bookstores.

Endowment income used for operations, continuing education fees, and other miscellaneous income.

Gross patient charges minus contractual allowances with insurers and government programs (Medicare/Medicaid/provincial health).

Revenue from cafeteria, parking, gift shop, medical education programs, and other ancillary services.

Total revenue from all primary business activities for the 12 month period.

Any other recurring income not captured in gross revenue: rental income, licensing fees, etc.

Annual total wages and benefits for nonessential employees (those whose work can be suspended during a loss).

Enter 0 to exclude payroll entirely, or a number from 1 to 364 to cover payroll for that many days. Enter 365 to include the full payroll amount.

Direct production costs: raw materials, components, and manufacturing overhead, excluding all payroll. Ordinary payroll is handled separately below.

Utility and contracted service costs that would stop or significantly reduce during a business interruption (for example, process gases, contracted logistics).

Operating expenses that would cease or be substantially reduced during a loss, for example, office supplies, client entertainment, advertising, nonessential subscriptions.

Third party costs directly attributable to client engagements (filing fees, court reporters, expert witnesses, outside counsel), excluding all payroll.

Interest paid on deposits, borrowings, and other liabilities. This is a continuing expense and reduces your net business income base.

Operating costs that would cease during a loss, for example, branch specific utilities, marketing, nonessential vendor contracts.

Investment income earned on the institution’s own portfolio (separate from customer facing interest income above). Often excluded from BI base.

Provision for loan losses / allowance for doubtful accounts. These are accounting charges, not cash expenses during a loss, so they are deducted.

Costs of collecting delinquent accounts: attorney fees, collection agency commissions, repossession costs. Deducted as non continuing.

Manufacturing and materials costs for commercial products, excluding all payroll.

Sales, marketing, and distribution costs that would stop during a business interruption.

Course materials, lab supplies, library acquisitions, and other direct teaching costs, excluding all payroll.

Administrative and overhead costs that would cease during a loss, for example, event costs, discretionary marketing, nonessential contractors.

Supply and service costs that would be reduced during an interruption: medical supplies, certain dietary costs, nonessential contracted services.

Direct costs of producing your goods or delivering your services, excluding all payroll.

Overhead costs that would stop or significantly reduce during a loss, for example, utilities, advertising, nonessential vendor contracts.