Aftermarket, Field Service & Service Parts worked example

Warranty Reserve at 94% reserve capture share: a worked example in aftermarket, field service & service parts

What does the result look like when reserve capture share reaches 94%? The full calculation is worked below with real intermediate numbers. a warranty manager or finance lead needs to estimate reserve exposure for units still inside the warranty period

The inputs for this scenario

  • Units under active warranty: 1,850 units (unchanged)
  • Expected warranty cost per unit: 145 $ / unit (unchanged)
  • Reserve capture share (claims likely to hit): 94 % (raised for this scenario; the documented default is 82)
  • Fixed warranty administration cost: 12,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Captured warranty exposure = units under warranty × expected warranty cost per unit × reserve capture share) to the inputs above produces each figure below.
  • At this operating point the engine returns 264,155 $ warranty reserve for warranty reserve requirement, the number this scenario is built around.
  • At this operating point the engine returns 143 $ / unit for expected warranty cost per unit.
  • At this operating point the engine returns 252,155 $ warranty reserve for captured warranty exposure.
  • At this operating point the engine returns 12,000 $ for fixed warranty administration cost.

How this compares with the baseline

  • Against the tool's baseline example, where reserve capture share sits at 82% and the headline result is 231,965 $ warranty reserve, this scenario comes in 13.88% above the baseline at 264,155 $ warranty reserve.
  • A figure at this level is achievable when reserve capture share is genuinely sustained, not just peaked for a shift. It uses a single blended cost-per-unit and claim share, so it won't capture a bathtub failure curve or a sudden defect campaign that concentrates claims in one cohort.

Results at a glance

  • Warranty reserve requirement: 264,155 $ warranty reserve (headline result)
  • Expected warranty cost per unit: 143 $ / unit
  • Captured warranty exposure: 252,155 $ warranty reserve
  • Fixed warranty administration cost: 12,000 $

Run it with your numbers

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

Last reviewed 2026-05-12.