In-house vs outsourced collections calculator
Compare the monthly net recovery of each set-up at your own volume. See which pays and where in-house starts to pay.
Monthly net recovery difference
At 400 accounts a month, the agency recovers €5,133 more after its commission than an in-house team would. In-house starts to pay from 573 accounts a month.
Net recovery by volume
The in-house line rises in jumps as agents are added. The agency line rises with each account, and they meet at the break-even volume.
Monthly comparison
| In-house | Agency | |
|---|---|---|
| Recovered | €120,000 | €120,000 |
| Agents | 2 | – |
| Agent cost | €8,400 | – |
| Fixed costs | €15,000 | – |
| Set-up cost per month | €3,333 | – |
| Commission | – | €21,600 |
| Fees | – | €0 |
| Total costs | €26,733 | €21,600 |
| Cost per unit recovered | 0.22 | 0.18 |
| Net recovery | €93,267 | €98,400 |
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Either way, the lever is which accounts get which treatment and when, set as rules on days past due and behaviour and tested on past accounts. Start free
Calculation details
Recovered (In-house) = Accounts placed per month × Average balance × Recovery rate Agents = ⌈Accounts placed per month ÷ Accounts per agent monthly⌉ Total costs (In-house) = Agents × Agent cost per month + Fixed monthly costs + Set-up cost ÷ Months to spread Recovered (Agency) = Accounts placed per month × Average balance × Recovery rate Total costs (Agency) = Recovered × Commission + Accounts placed per month × Fee per account Net recovery = Recovered − Total costs
An in-house team costs the same at low and high volumes, and an agency's costs are a share of what it recovers, so the comparison turns on volume. The calculation covers one month in steady state and excludes ramp-up, seasonality and legal costs.
In-house vs outsourced collections
The calculator compares monthly net recovery for an in-house collections team and an agency. Enter accounts placed and average balance, along with the recovery rates and costs for both set-ups.
The comparison shows how each set-up performs at your monthly volume. Use it to review the costs behind each result and see where in-house starts to pay.
Common questions
How do I compare in-house and outsourced debt collection?
Compare monthly net recovery for each set-up after its costs. The calculation uses accounts placed, average balance, recovery rates and the costs entered for the in-house team and agency.
When should I outsource collections to an agency?
Compare monthly net recovery at your account volume. The result shows which set-up is ahead and the volume where in-house starts to pay.
What does an in-house collections team cost each month?
The calculation adds the monthly cost of the agents needed to fixed costs. The set-up cost is spread across the months entered.
How does agency commission compare with in-house costs?
The agency's costs include commission on recovered amounts and any fee per account. In-house costs combine monthly agent and fixed costs with the monthly share of the set-up cost.
At what volume do in-house collections pay off?
The break-even volume is the smallest monthly volume where in-house net recovery stays at or above the agency's. If the agency stays ahead at every volume, the tool shows no break-even.