Free tool
Scheme leakage calculator
Trade-promotion and scheme budgets quietly leak money — to over-claims, duplicates, unclaimed accruals and manual errors. Estimate what it could be costing you, then see how to close the gap.
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Estimate your annual leakage
Estimated annual claims leakage
₹10 lakh – ₹17 lakh
How we calculated this
Scheme spend = turnover × the spend % you set = ₹3 crore/year. Disputed value = scheme spend × your disputed %. Of that disputed value, we assume 40–70% is ultimately lost — written off, never re-claimed, or conceded. That share is a modelling assumption, not a sourced industry figure, which is why the output is a range and not a number.
Working capital locked in the settlement cycle
₹39 lakh – ₹59 lakh
How we calculated this
Scheme spend pro-rated over your 60-day settlement cycle — spend × (cycle ÷ 365) — shown with a ±20% band because spend is not spread evenly across the year. Both factors are your inputs; the band is the modelling assumption.
Manual effort spent on claims
180 person-days / year
How we calculated this
Your 15 person-days per month × 12. Pure arithmetic on your input — no assumption involved.
Every figure derives from what you entered. This is a sizing illustration, not an audit of your business — your actual position depends on your schemes, controls and reconciliation.
Methodology and assumptions
Every output derives from your inputs. Scheme spend is your turnover multiplied by the spend percentage you set (an adjustable input, not an industry benchmark). Estimated leakage is the disputed or short-settled share of that spend, of which we assume 40–70% is ultimately lost — that assumed share is the model's one estimating step, which is why the result is shown as a range and never as a single figure. Working capital is scheme spend pro-rated over your settlement cycle with a ±20% band. Person-days are your monthly figure times twelve.
We cite no external benchmark as fact anywhere in this tool. If a number would make the estimate look more precise than your inputs justify, we leave it out.
Get the analysis in writing
Where scheme leakage comes from
- Over-claims and duplicates. A distributor claims more than the agreement allows, or the same claim twice — and a manual check misses it.
- Unclaimed accruals. Rebates you owe but never get claimed cleanly still distort your provisions and can resurface later.
- Manual errors. Re-keying claim files and looking up the right slab or tier by hand, every cycle, for every partner.
- Slow reconciliation. Disputed money sits unresolved while spreadsheets are tied out line by line.
How to close the gap
The fix is to take schemes out of spreadsheets: accrue them automatically, reconcile each claim against the agreement it falls under so over-claims and duplicates surface on their own, and settle with GST-compliant credit notes and a full audit trail. See claims & deduction reconciliation, the software buyer’s guide, estimate the other side with the rebate accrual estimator and the claims working-capital calculator, or start a free trial below.
Frequently asked questions
What is scheme leakage?
Scheme leakage is the share of your trade-promotion or scheme budget that is lost rather than correctly settled — through over-claims and duplicate claims, accruals that are never claimed, manual spreadsheet errors, and money tied up by slow reconciliation. It is the gap between what you intended to pay and what was actually, correctly settled.
How much do companies typically lose to scheme leakage?
It depends on scheme complexity, controls and how claims are reconciled — which is why this calculator derives its estimate from your own numbers instead of quoting an industry benchmark. Enter your turnover, scheme spend, disputed share and settlement cycle, and it shows a range for your business.
How is the estimate calculated?
Scheme spend is your turnover times the spend percentage you set. The leakage estimate is the disputed or short-settled share of that spend, of which the model assumes 40–70% is ultimately lost — that assumption is the reason the output is a range, and every output has a "how we calculated this" expander showing the formula. It is an illustration to size the opportunity, not a measurement.
How do I reduce scheme leakage?
Accrue schemes automatically instead of in spreadsheets, reconcile every distributor claim against the agreement it falls under (so over-claims and duplicates are caught), and settle with GST-compliant credit notes and a clear audit trail. That is exactly what RebateLedger is built to do.
See it on your own data in 60 seconds
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