Aftermarket, Field Service & Service Parts worked example

Warranty Claim Cost at 99% approved claim payment share: a worked example

What does the result look like when approved claim payment share reaches 99%? The full calculation is worked below with real intermediate numbers. a warranty manager needs to estimate total cost exposure from approved or expected warranty claims

The inputs for this scenario

  • Warranty claims received: 148 claims (unchanged)
  • Average payout per warranty claim: 520 $ / claim (unchanged)
  • Approved claim payment share: 99 % (raised for this scenario; the documented default is 91)
  • Fixed claim handling and admin cost: 3,800 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Approved claim payment cost = warranty claims × average claim value × approved payment share) to the inputs above produces each figure below.
  • At this operating point the engine returns 79,990 $ claim cost for warranty claim cost, the number this scenario is built around.
  • At this operating point the engine returns 540 $ / claim for average warranty claim value.
  • At this operating point the engine returns 76,190 $ claim cost for approved claim payment cost.
  • At this operating point the engine returns 3,800 $ for fixed claim handling cost.

How this compares with the baseline

  • Against the tool's baseline example, where approved claim payment share sits at 91% and the headline result is 73,834 $ claim cost, this scenario comes in 8.34% above the baseline at 79,990 $ claim cost.
  • A figure at this level is achievable when approved claim payment share is genuinely sustained, not just peaked for a shift. It assumes a single blended average claim value and approval rate; high-variance claim populations (a few large structural failures among many small ones) need claim-tier segmentation rather than one average.

Results at a glance

  • Warranty claim cost: 79,990 $ claim cost (headline result)
  • Average warranty claim value: 540 $ / claim
  • Approved claim payment cost: 76,190 $ claim cost
  • Fixed claim handling cost: 3,800 $

Run it with your numbers

  • Every input above is editable in the live Warranty Claim Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.