Calculate collection efficiency with and without arrears
Enter each month’s instalments billed, amounts collected against them and arrears, and arrears at the start. See collection efficiency both ways by month, with months below your target flagged.
Collection efficiency excluding arrears
In 2026-10, collection efficiency including arrears was 98.8%. Only 90.5% of the month’s own instalments was collected, below the 95.0% target. Arrears stand at 1,820,000.
Collection by month
The solid line shows collection against the month’s own instalments. Red dots fall below target, and the dashed line adds arrears recoveries.
Monthly figures
| Month | Instalments billed | Collected | Efficiency with arrears | Efficiency without arrears | Arrears recovery | Arrears at end |
|---|---|---|---|---|---|---|
| 2025-11 | 10,000,000 | 10,068,000 | 100.7% | 97.5% | 53.0% | 532,000 |
| 2025-12 | 10,100,000 | 10,076,000 | 99.8% | 96.9% | 55.1% | 556,000 |
| 2026-01 | 10,201,000 | 10,133,000 | 99.3% | 96.2% | 57.0% | 624,000 |
| 2026-02 | 10,303,000 | 10,186,000 | 98.9% | 95.6% | 54.0% | 741,000 |
| 2026-03 | 10,406,000 | 10,296,000 | 98.9% | 95.0% | 56.0% | 851,000 |
| 2026-04 | 10,510,000 | 10,364,000 | 98.6% | 94.3% | 53.0% | 997,000 |
| 2026-05 | 10,615,000 | 10,492,000 | 98.8% | 93.7% | 55.0% | 1,120,000 |
| 2026-06 | 10,721,000 | 10,613,000 | 99.0% | 93.0% | 57.0% | 1,228,000 |
| 2026-07 | 10,829,000 | 10,670,000 | 98.5% | 92.4% | 54.0% | 1,387,000 |
| 2026-08 | 10,937,000 | 10,814,000 | 98.9% | 91.8% | 56.0% | 1,510,000 |
| 2026-09 | 11,046,000 | 10,867,000 | 98.4% | 91.1% | 53.0% | 1,689,000 |
| 2026-10 | 11,157,000 | 11,026,000 | 98.8% | 90.5% | 55.0% | 1,820,000 |
| Total | 126,825,000 | 125,605,000 | 99.0% | 93.9% | – | – |
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View the formulas
Efficiency with arrears = (Collected on instalments + Arrears collected) ÷ Instalments billed Efficiency without arrears = Collected on instalments ÷ Instalments billed Arrears recovery = Arrears collected ÷ Arrears at start Arrears at end = Arrears at start + Instalments billed − Collected on instalments − Arrears collected
Arrears recoveries can lift collection efficiency including arrears to 100% or more as collection against the month’s own instalments slides, so both measures are shown. There are no write-offs, so arrears carry forward as they are.
Collection efficiency formula
Collection efficiency compares the amount collected with instalments billed. This calculator shows the measure with arrears collections included and with only collections against the month’s instalments.
The two measures show whether arrears recoveries are lifting the overall figure as collection against the month’s instalments falls. Compare the monthly results with your own target.
Common questions
What is the collection efficiency formula?
Collection efficiency including arrears is collected against the month’s instalments plus collected against arrears, divided by instalments billed. Excluding arrears, it is collected against the month’s instalments divided by instalments billed.
How do you calculate collection efficiency for a loan book?
For each month, divide the amount collected against instalments billed by the instalments billed. This calculator also shows a measure that adds collections against arrears.
What is collection efficiency including arrears?
It is the total collected against the month’s instalments and arrears, divided by instalments billed. Arrears collections can make this figure higher than the measure that counts only the month’s own instalments.
Why can collection efficiency be above 100%?
The measure including arrears counts collections against arrears as well as the month’s instalments. Those arrears recoveries can lift the figure above 100%.
What does falling collection efficiency mean?
A falling measure excluding arrears means a smaller share of the month’s billed instalments was collected. The calculator shows the monthly figure beside your target.