Measure the budget impact of a business interruption insurance premium using annual premium, business revenue, available cash, and your own insurance-budget threshold. The calculator shows premium as a share of revenue, remaining insurance budget, months of current cash represented by the premium, and whether the entered premium fits the selected threshold. This does not judge the quote’s coverage quality or set an industry benchmark; it simply makes your own affordability assumption explicit.
Premium share = annual premium ÷ annual revenue × 100
Selected budget = annual revenue × budget threshold
Remaining budget = selected budget − annual premium
The main result shows what percentage of annual revenue the premium consumes. The selected threshold is a user-defined planning constraint, not a universal recommendation.
Affordability does not measure value or adequacy. A cheaper policy may have materially different limits, exclusions, deductibles, defense provisions, insurer terms, or payment schedules.
An annual premium of $12,000 on $1,500,000 revenue equals 0.80% of revenue. At a user-selected 1.20% threshold, the annual budget is $18,000.
Remaining budget = $18,000 − $12,000 = $6,000
Monthly premium equivalent = $12,000 ÷ 12 = $1,000
With $180,000 cash reserve, the premium equals 0.80 months of that reserve at its monthly equivalent.
Use annual business revenue or another consistent budget base that reflects the funds available to support insurance costs.
No. It measures budget impact only; it does not compare coverage quality, insurer strength, exclusions, or market quotes.
Yes. Enter the full annual cash cost you expect to pay so the budget comparison is complete.
Convert the installments and any financing charges to a total annual cost before entering the premium.
No. It is your own planning threshold and should reflect cash flow, risk exposure, and other insurance needs.
| Metric | Use |
|---|---|
| Premium share | Revenue-based budget impact |
| Selected budget | User-defined maximum annual allocation |
| Remaining budget | Room above or below the chosen allocation |
| Months of cash | Liquidity context for the annual premium |