Resources

Revenue Leakage & ROI Calculator

Enter your assumptions in the inputs panel. All outputs update instantly, with projected growth applied from Year 2 onward.

Inputs

Core assumptions

Blue = editable
$

Valuation, costs & horizon

Used in EV / NPV
Note: Formulas used:
  • Incremental EBITDA = Recoverable Revenue × EBITDA margin
  • Net EBITDA = Incremental EBITDA − Annual platform cost
  • NPV subtracts one-time cost upfront; cash flows grow at the projected rate from Year 2

Key Outputs

Calculated outputs update instantly based on your inputs.

Gross advisory revenue (Year 1)
$70,000,000
Fee rate = 70 bps (0.7%)
Estimated revenue leakage (Year 1)
$4,000,000
4 bps of AUM
Recoverable revenue (Year 1)
$3,000,000
Recovery rate = 75%
Billing operations cost (Year 1, 2%)
$1,400,000
2% of gross advisory revenue
Incremental EBITDA (Year 1)
$900,000
EBITDA margin = 30%
Net EBITDA after platform cost (Year 1)
$600,000
Annual cost = $300,000
Enterprise value uplift (Year 1)
$6,000,000
Multiple = 10x
Payback period (growth-adjusted)
0.61 yrs
(annualCost + oneTime) / Incremental EBITDA
NPV over horizon (after one-time cost, growth-adjusted)
$1,400,576
After one-time cost — 3-year horizon, 15% growth

Cash Flow Schedule (for NPV)

Years 1–10
YearNet EBITDA after platform costDiscount factorPresent valueCumulative net cash flow
1$600,0000.8929$535,714$350,000
2$690,0000.7972$550,064$1,040,000
3$793,5000.7118$564,798$1,833,500
40.6355$1,833,500
50.5674$1,833,500
60.5066$1,833,500
70.4523$1,833,500
80.4039$1,833,500
90.3606$1,833,500
100.322$1,833,500

Sensitivity: Year 1 EV Uplift ($)

Leakage (bps) × Recovery
Leakage (bps) ↓ / Recovery →50%75%100%
2$1,500,000$3,000,000
3$1,500,000$3,750,000$6,000,000
4$3,000,000$6,000,000$9,000,000
5$4,500,000$8,250,000$12,000,000
6$6,000,000$10,500,000$15,000,000
EV uplift: (Recovered Revenue × EBITDA margin − Annual platform cost) × Valuation multiple, where Recovered Revenue = AUM × Leakage(bps)/10,000 × Recovery. One-time cost is not included here.
Disclaimer: For planning purposes only. This is not financial, legal, or investment advice.