Aftermarket, Field Service & Service Parts worked example

Aftermarket Margin Leakage at 81% recoverable leakage share: a worked example

This scenario runs the aftermarket margin leakage calculation on the strong side: 81% recoverable leakage share, with every other input held at its documented default. an aftermarket manager needs to quantify margin lost to discounts, unbilled service, or parts leakage

The inputs for this scenario

  • Aftermarket leakage transactions: 310 transactions (unchanged)
  • Margin leakage per transaction: 185 $ / transaction (unchanged)
  • Recoverable leakage share: 81 % (raised for this scenario; the documented default is 70)
  • Fixed recovery or audit cost: 9,500 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Recoverable leakage exposure = leakage transactions × margin leakage per transaction × recoverable share) to the inputs above produces each figure below.
  • At this operating point the engine returns 55,954 $ margin leakage for aftermarket margin leakage, the number this scenario is built around.
  • At this operating point the engine returns 180 $ / transaction for margin leakage per transaction.
  • At this operating point the engine returns 46,454 $ margin leakage for recoverable leakage exposure.
  • At this operating point the engine returns 9,500 $ for fixed recovery or audit cost.

How this compares with the baseline

  • Against the tool's baseline example, where recoverable leakage share sits at 70% and the headline result is 49,645 $ margin leakage, this scenario comes in 12.71% above the baseline at 55,954 $ margin leakage.
  • Use it to scope a margin-recovery or pricing-audit initiative and check whether the recoverable dollars justify the effort. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Aftermarket margin leakage: 55,954 $ margin leakage (headline result)
  • Margin leakage per transaction: 180 $ / transaction
  • Recoverable leakage exposure: 46,454 $ margin leakage
  • Fixed recovery or audit cost: 9,500 $

Run it with your numbers

  • Every input above is editable in the live Aftermarket Margin Leakage calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.