How to calculate lost profits

Loss of profit is now considered the income that would be received by a private person under normal circumstances, but did not receive in the event of a situation beyond his control directly. To make the calculation of the amount of lost profits need to determine the type of the expected profit.

To calculate lost profits is not so difficult

You will need

agreements with contractors and clients
the financial plan of the company for a year
calculator

Instruction

Determine the size of lost profits for non-performance of the contract properly. In General, the notion of the amount of lost profits equal to the amount of cash that would get an individual, if he or his contractor has duly performed its obligations under the contract.For example, the lease car thought that the cost of this service is 30 thousand rubles per month. Suppose car was damaged by the tenant during the period of the lease. Loss of benefit will then be equal to 30 thousand rubles multiplied by the number of months for which the car is not functioning.

The contract is concluded, but not executed properly

Calculate lost profits due to late delivery of the products. The amount of lost profits may amount to a volume of sales over the reporting period, net of undelivered products.For example, the company sells furniture. His customers made an order of 150 thousand roubles. The order of the buyer and other furniture at the time were not delivered. In this situation, lost profits may amount only to 150 thousand rubles, as there is sufficient evidence that the rest of the furniture in the supply would be sold out in time.

How to calculate loss of <strong>benefits</strong>

Rate the planned sales of your company and based on this calculate lost profits.Some methods suggest to consider when calculating lost profits in such circumstances as the planned sales volumes, the change in range due to undelivered products, reduce quality, seasonal conditions of sale. Thus, the amount of lost profits requires consideration of all the circumstances that ultimately affected the size of expected profit. Be aware of all minor and emergency conditions, which was a violation of the contract. These changes in projected earnings can be recovered.

Note

Official confirmation is further strengthened by the breach of contract one of the parties that resulted in the emergence of profits.

Useful advice

In order to compensate for lost profits must every plan earnings to support appropriate documentation.

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