Warranty Leakage Calculator
How much recurring revenue does your installed base leak every year to expired warranties without an extended-warranty or service contract on the other side? Move the sliders to find out.
Servatio reduces leakage 60-80% via 90-day expiration alerts + AI-drafted outreach.
Get early accessHow the calculation works
Warranties expiring per year = (active machines × 12) ÷ standard warranty length. A dealer with 500 machines on 24-month warranties has ~250 expirations annually — about 5 per week.
Current annual revenue = expiring × conversion rate × avg revenue per renewed machine. Industry data shows most dealers convert 10-20% by default — the rest expire silently.
Potential annual revenue = expiring × target conversion × avg revenue. Top-quartile operators (with proper warranty management software) hit 35-50% conversion. The gap is what you're leaking.
Industry benchmarks
- Bottom quartile dealers: 5-15% conversion (warranties tracked in Excel or not tracked at all)
- Median dealer: 15-25% conversion (one rep manually watching expirations)
- Top quartile: 35-50% conversion (warranty management software with 90/60/30 alerts and assigned owners)
- Best in class: 50-70% conversion (vertical SaaS like Servatio + AI outreach + service contracts at default)
What drives conversion improvements
- Visibility — seeing expirations 90 days in advance accounts for ~70% of the improvement
- Assigned ownership — every alert routed to a specific account owner
- Pre-drafted outreach — AI-drafted extended-warranty emails in EN/PT/ES cut response time
- Standardized offer per equipment category — autoclave PM contract, CBCT QA, compressor service
- Recurring billing — Stripe-powered, so you collect money the same day you win