IT Downtime Cost Calculator Australia
Calculate the true cost of IT downtime for your Australian business. Our free calculator helps you understand revenue loss, productivity impact, and recovery costs when systems go down.
IT Downtime Cost Calculator
Enter your business details to calculate downtime costs
How We Calculate IT Downtime Costs
1. Revenue Loss
We calculate hourly revenue by dividing your annual revenue by working hours (typically 2,080 per year). This is then multiplied by your estimated downtime hours and a revenue-impact factor based on how dependent your business is on IT.
Revenue Loss = (Annual Revenue / 2,080) × Downtime Hours × Revenue Impact %2. Productivity Loss
Employee productivity cost is calculated using the number of affected employees, their average hourly cost (salary + on-costs, typically 1.3× base salary), and a productivity factor based on partial vs. complete work stoppage.
Productivity Loss = Employees × Hourly Cost × 1.3 × Downtime Hours × Productivity Impact %3. Recovery Costs
Recovery costs include IT labour for diagnosis and repair, potential emergency callout fees, data recovery if needed, and any hardware/software replacements. These vary significantly based on incident type.
4. Intangible Costs
Beyond direct costs, downtime impacts customer satisfaction, brand reputation, employee morale, and potential compliance penalties. These are harder to quantify but can exceed direct costs by 2-3×.
Australian IT Downtime Statistics
$10K-$50K
Average hourly cost for Australian SMBs
14 hours
Average annual unplanned downtime
85%
Downtime reduced with proactive monitoring
| Industry | Avg. Hourly Cost | Revenue Impact |
|---|---|---|
| Financial Services | $100,000+ | Very High |
| Healthcare | $50,000-$100,000 | High (+ compliance) |
| Retail/E-commerce | $25,000-$75,000 | High |
| Professional Services | $15,000-$40,000 | Medium-High |
| Manufacturing | $20,000-$50,000 | Medium |
| Construction | $10,000-$30,000 | Medium |
Frequently Asked Questions
How do you calculate IT downtime costs?
IT downtime costs are calculated by combining direct revenue loss (hourly revenue × downtime hours), productivity loss (employee count × average hourly wage × downtime hours × productivity factor), and recovery costs (IT labour, emergency services, potential data recovery). Our calculator uses industry-standard formulas tailored for Australian businesses.
What is the average cost of IT downtime in Australia?
According to industry research, the average cost of IT downtime for Australian SMBs ranges from $10,000 to $50,000 per hour, depending on the business size and industry. Enterprise businesses can face costs exceeding $100,000 per hour. Our calculator provides personalised estimates based on your specific business parameters.
How can I reduce IT downtime costs?
Reduce IT downtime costs through proactive monitoring, regular maintenance, robust backup solutions, disaster recovery planning, and partnering with a managed IT services provider. Businesses with 24/7 monitoring typically experience 85% less unplanned downtime.
Reduce Your IT Downtime Risk
Proactive monitoring and managed IT services can reduce unplanned downtime by up to 85%. Find out how we can protect your business.