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Service-credit calculator for stated SLA terms

Enter eligible service fees, measured attainment, your credit tiers and a period cap. Inspect a fictional worked example and the assumptions behind every result.

The short answerFor the entered tier policy, gross credit is eligible fees multiplied by the most severe applicable tier rate. Additional credit is the smaller of gross credit and the remaining period cap. The example gives $1,000 additional credit: $10,000 × 20% = $2,000 before the cap, but a $1,500 cap already has $500 used.

Enter your agreed fee and tier policy

The initial values are a fictional example. This calculates one new fee-based claim, with one tier and a period cap shared with other claims. Enter the already-calculated service measure from your agreement.

Same service and period as the cap
Unrounded value; not a ticket count
Exclude payments toward this same entitlement

Three editable tiers

Thresholds mean strictly below. At an exact threshold, that tier does not apply. Only the most severe applicable tier pays; tiers do not add together.

Applied tier20%Attainment below 95%
Credit before cap$2,000.00Eligible fees × tier rate
Cap remaining$1,000.00Period cap less prior credits, minimum zero
Additional illustrative credit$1,000.00Lower of gross credit and cap remaining

This is not an unpaid-balance calculator for a partly settled entitlement. USD display rounds to cents after calculation. Claim approval, exclusions, fee scope, tax, minimum amounts and deadline checks remain separate. Keep the contractual rounding rule with your review.

Use this calculator after the service measure and fee base have been agreed. Its purpose is to make a proposed credit calculation inspectable. It does not reconstruct ticket clocks or determine a customer's entitlement. For the operational measure, start with SLA attainment per account; for a reusable ticket summary, use the SLA dashboard workbook.

The policy this calculator can represent

The tool represents one new claim for a single service and period, a fee-based percentage credit, three editable thresholds and one cumulative cap shared with other claims. Attainment below a threshold triggers that tier. Where several thresholds match, only the tier for the lowest threshold applies. Credit rates must stay equal or increase as performance worsens.

That is one possible contract structure. It cannot represent daily credits, per-incident fixed amounts, tiers that stack, service bundles with different fee bases, a minimum payable credit or special rounding at intermediate steps. If your terms use those structures, calculate the clause directly rather than approximating it with these fields.

Do not interchange availability, ticket-resolution attainment and response-time attainment. A monthly uptime percentage and the percentage of eligible tickets resolved on time may share a percent sign, but their populations and clocks are different. Use the SLA reporting-policy worksheet to identify the actual measure and denominator rules to check eligibility.

Worked example: a shared cap has already been partly used

All amounts below are synthetic USD values. None are Covirage prices or a vendor's published rates.

Input or result Example Basis
Eligible monthly service fees $10,000 The fee base agreed for this service
Measured attainment 92% Previously calculated under the stated policy
Credit below 99% 5% Fictional tier
Credit below 98% 10% Fictional tier
Credit below 95% 20% Fictional tier
Selected rate 20% 92 is strictly below 95
Gross credit $2,000 $10,000 × 20%
Period cap $1,500 $10,000 × 15%
Other claims using that cap $500 Separate claims in the same service, period and cap
Remaining cap $1,000 Maximum of $1,500 − $500 and zero
Additional illustrative credit $1,000 Minimum of $2,000 and $1,000

Subtract credits for other claims from the cap once. Do not subtract them from both the gross credit and the remaining cap. A prior credit for another service belongs here only if the agreement says it consumes this same cap. Payments already made against this same entitlement are excluded: this tool does not calculate its unpaid balance. For example, a $500 entitlement already settled in full has no remaining balance, regardless of unused period cap.

Boundary checks before sending a claim

With the example tiers and unchanged fees, 99% matches no breach tier and gives zero. Exactly 98% produces a 5% gross credit of $500. Exactly 95% produces a 10% gross credit of $1,000. A value just below 95% reaches the 20% tier. These differences make the unrounded measure and the words describing each boundary material.

If prior credits equal or exceed the cap, additional credit is zero. If eligible fees are zero, both the gross credit and cap are zero. Missing or invalid inputs make the result unavailable; the tool does not turn a blank into a favorable zero. Keep the full precision of the service measure until your contract requires rounding.

Keep a calculation with its evidence

Record the service and billing period, agreement version, fee-source rows, measurement output, exclusions, tier selected, cap consumption and proposed amount. Review effective dates using contract-version reporting. Store the claim deadline and who approves it beside the calculation. A result alone cannot show whether the right service or fee base was used.

The Amazon Compute SLA is a primary example of published service-specific credit bands and claim conditions. Microsoft's credit-request guidance also describes a claim process. Neither source supplies this tool's fictional defaults. Check the actual applicable terms rather than transferring one provider's measure, rate or procedure to another.

For a service-reporting project, the analytics statement-of-work template can record the agreed inputs, outputs and acceptance checks. The interactive calculator runs locally in your browser; using it does not submit a claim or upload ticket data.

Questions people ask

Does an SLA breach always earn a service credit?

No. A credit depends on the agreement's measure, eligible fees, exclusions, evidence, claim process and approval. The calculator performs only the entered tier and cap arithmetic.

Are these AWS or Microsoft credit rates?

No. The default tiers are fictional. Enter the terms of the applicable service and agreement version; do not use this example as a vendor policy.

What happens at exactly 98% in the example?

The below-98% tier does not apply. The below-99% tier applies at 5%, so eligible fees of $10,000 produce $500 before the cap.

Can I enter a blank as zero?

A blank makes the result unavailable. Enter an explicit zero if there are no prior credits or eligible fees.

Can this calculate the unpaid balance of an existing entitlement?

No. The gross amount is a new claim; prior credits are other claims consuming the shared cap. Payments already made against this same entitlement require a separate balance calculation and must not be entered as other claims.