Aftermarket, Field Service & Service Parts worked example

Warranty Claim Cost at 66% approved claim payment share: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop approved claim payment share to 66%, then walk the calculation through step by step. Estimate warranty claim cost from approved claims, average claim value, paid share, and fixed handling cost.

The inputs for this scenario

  • Warranty claims received: 148 claims (held at the documented default)
  • Average payout per warranty claim: 520 $ / claim (held at the documented default)
  • Approved claim payment share: 66 % (the input this scenario stresses; the baseline uses 91)
  • Fixed claim handling and admin cost: 3,800 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Approved claim payment cost = warranty claims × average claim value × approved payment share.
  • Warranty claim cost works out to 54,594 $ claim cost at these inputs, and this is the headline figure for the scenario.
  • Average warranty claim value works out to 369 $ / claim at these inputs.
  • Approved claim payment cost works out to 50,794 $ claim cost at these inputs.
  • Fixed claim handling cost works out to 3,800 $ at these inputs.

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 26.06% below the baseline at 54,594 $ claim cost.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to approved claim payment share, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. 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: 54,594 $ claim cost (headline result)
  • Average warranty claim value: 369 $ / claim
  • Approved claim payment cost: 50,794 $ claim cost
  • Fixed claim handling cost: 3,800 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Warranty Claim Cost calculator, set approved claim payment share to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.