Why are claim rates quoted per hundred units?

A rate per hundred is easier to compare than a raw count. A rate of 3.2 percent means 3.2 claims arrive for every 100 units sold or shipped.

What if one claim covers several units?

Count the claim once. The rate measures how often claims arrive, not how many units they touch, so severity needs its own measure.

Should the denominator be sold or shipped units?

Use the same population the claims come back from. Units sold is the common choice; units shipped works when sell-through is unknown, as long as you hold it consistent.

Can the claim rate rise above 100 percent?

No. Claims come from the sold population, so the rate tops out at 100 percent. A higher number means the claims and sold counts describe different populations.

Toys, Sporting Goods & Recreational Products calculator

Warranty Claim Rate Calculator

Claims per hundred units sold show how often field failures come back through warranty. Enter claims, units sold and your ceiling to see the rate, the gap and the claim-free count.

What this calculator does

Warranty claim rate per units sold, the gap to your ceiling, and the count of claim-free units.

Formula used

Claim rate = warranty claims received ÷ total units sold × 100
Gap to target = target maximum claim rate − claim rate (negative means above the ceiling)
Claim-free units = total units sold − warranty claims received

Inputs explained

Warranty Claims Received: Warranty claims filed against this product in the period.
Total Units Sold or Shipped: Units sold or shipped in the same period as the claims.
Target Maximum Claim Rate: Claim rate ceiling from the warranty or quality plan.

How to use the result

Best suited to monthly warranty review, checking a rate against a ceiling, comparing two product lines.
It measures claim frequency, not severity, and a few expensive claims can still dominate cost. Claims filed late or after the warranty window are not in the received count.

Common questions

Why are claim rates quoted per hundred units? A rate per hundred is easier to compare than a raw count. A rate of 3.2 percent means 3.2 claims arrive for every 100 units sold or shipped.
What if one claim covers several units? Count the claim once. The rate measures how often claims arrive, not how many units they touch, so severity needs its own measure.
Should the denominator be sold or shipped units? Use the same population the claims come back from. Units sold is the common choice; units shipped works when sell-through is unknown, as long as you hold it consistent.
Can the claim rate rise above 100 percent? No. Claims come from the sold population, so the rate tops out at 100 percent. A higher number means the claims and sold counts describe different populations.

Last reviewed 2026-10-01.