Sales needed to cover bad debt

Enter the write-off and your profit margin to see the sales it takes to earn it back.

Bad debt

The demo numbers are made up.

Business size

Use gross or net margin, whichever you use to judge a sale.

Sales to earn back

€500,000
Invoices needed250
Days of selling15
Sales per euro written off€20.00

At a 5% margin, earning back €25,000 takes €500,000 of new sales, or 15 days of selling.

Sales needed by margin

The thinner the margin, the more sales one unpaid invoice costs.

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See the formulas
Sales to earn back = Write-off ÷ Profit margin
Invoices needed = Sales to earn back ÷ Average invoice
Days of selling = Sales to earn back ÷ (Monthly sales ÷ 30)
Sales per euro written off = 1 ÷ Profit margin

Uses a 30-day month and assumes no recovery, tax relief or credit insurance.

Sales needed to cover bad debt

The tool works out how much new sales it takes to earn back an invoice written off as bad debt. Enter the write-off and your profit margin to get the result.

The result shows how much sales the write-off takes at your stated margin. Use it to show what an unpaid invoice means for sales before deciding whether to ship to a customer.

Common questions

How much do I need to sell to recover a bad debt?

Divide the write-off by your profit margin. The calculator shows the new sales needed to earn it back.

How do I calculate sales needed to cover bad debt?

Divide the amount written off by your profit margin. The tool also shows the result as invoices and days of sales.

What is a bad debt sales calculator?

It works out how much new sales it takes to earn back an invoice written off as bad debt. Enter the write-off and your profit margin.

How many invoices make up for a write-off?

Divide the sales needed to cover the write-off by your average invoice. The calculator rounds the result up to a whole invoice.

How does profit margin affect the sales needed to cover bad debt?

The sales needed are the write-off divided by the profit margin. A thinner margin means more sales are needed to earn it back.