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Business Interruption Calculator

Estimate a business income and extra expense limit from revenue, continuing expenses, restoration period and extended period of indemnity.

How the business interruption calculator works

Business income insurance replaces lost net income and continuing expenses while a business recovers from a covered loss. The limit should cover the realistic restoration period, the ramp-up afterwards, and extra expense.

Formula

Annual BI = (Revenue − Non-continuing expenses) × (1 + Growth). Limit = BI × Months ÷ 12 + BI ÷ 365 × EPI days × Shortfall % + Extra expense, and at least BI × Coinsurance %.

How to use it

1. Enter annual revenue and the expenses that would stop.
2. Enter expected growth and the restoration period.
3. Enter the extended period, ramp-up shortfall and extra expense.
4. Choose the BI coinsurance percentage.

Worked example

$3.2M revenue minus $1.35M non-continuing expenses, 4% growth: $1.92M annual BI. Nine months is $1.44M; adding the extended period and $150K extra expense suggests about $1.72M.

Frequently asked questions

What is the period of restoration?

The time from the damage until the property should be repaired or replaced with reasonable speed — it ends when repairs end, not when sales recover.

Why add an extended period of indemnity?

Revenue often lags after reopening. The EPI covers that ramp-up period.

Guides

• How to Set a Business Interruption Limit That Actually Covers the Loss

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