AMC renewal calculator
Put a number on two quiet leaks in a service business: contracts that lapse without renewal, and contracts that cost more to serve than they earn.
Your renewals
Starting values are examples. Replace each one with your own.
Contract pricing
Your best estimate. Start low if unsure.
What is at stake each year
- Contracts lapsing each year
- 60
- Revenue lost to lapsed contracts
- ₹15,00,000
- Revenue kept by reaching your target
- ₹7,50,000
- Lost on contracts priced below cost
- ₹1,80,000
- Total you could recover each year
- ₹9,30,000
How this is worked out
- Lapsing contracts = contracts × (100% − renewal rate).
- Revenue lost = lapsing contracts × average value.
- Revenue kept = contracts × (target rate − today's rate) × average value.
- Loss below cost = contracts × share below cost × average yearly loss.
- Total = revenue kept + loss below cost.
Every number is your own input. None of it is a claim by AIMS.
AIMS IQ lists every contract due for renewal three months ahead and shows the real margin on each one. See AMC and renewals.
Questions
What is a good AMC renewal rate?
There is no single benchmark; it depends on the equipment, the customer and how renewals are chased. Enter the rate you get today and the rate you aim for. The gap between them is what the calculator prices.
How do I know which contracts lose money?
Compare what each contract earns with what it costs to serve: visits, labour hours, travel and parts. If you do not track that yet, start with a low estimate.
Is the recoverable figure a forecast?
No. It is the contract value in the gap between your current and target renewal rates, plus the shortfall on underpriced contracts. It shows what is at stake, not what you will win.
Guides on AMC and service
- How to price an AMC renewal from real cost
Price annual maintenance contract renewals from what each contract really cost you to serve, including visits, spares and technician time.
- Why AMC renewals slip, and how to see them coming
The reasons maintenance contract renewals are missed, and a simple routine to see every renewal months ahead and offer it on time.
- Scheduling preventive maintenance visits
How equipment dealers and service providers can schedule preventive visits from each contract and warranty, and stop visits being missed.