Collections Yield Calculator

Collections yield measures efficiency. This calculator reports it.

Delinquent balance

Gross recovery

Collection costs

Write-off remainder

Net yield %

38.80%

Net recovery

$97,000

Cost as % of gross recovery

22.40%

How the math works

Net recovery = gross − costs. Yield = net / delinquent balance.

A 40% net yield on $250k delinquent balance = $100k recovered. Cost ratio (22%) tracks collection efficiency — below 20% is strong. Above 35% suggests process needs tightening or stop pursuing smallest accounts.

How to Use

Enter delinquent balance.
Enter gross recovery.
Enter collection costs.
Enter write-off remainder.
Read net yield.

Frequently Asked Questions

Benchmark?

Strong collection: 50-65% yield on 30+ day AR. Average: 35-50%. Weak: below 30%. Yield declines with age; older vintages recover less. Portfolio mix affects result (workforce vs luxury vs commercial tenants).

Cost efficient?

Internal staff + software: $50-150 per collection attempt. Third-party: 25-50% contingency on amount recovered. Mixed approach often optimal — internal for fresh, third-party for aged-out. Track yield net of cost, not gross.

Process improvement?

Automated day-1 notification (email/SMS). Day-5 call. Day-15 formal notice. Day-30 payment plan offer. Day-60 pre-legal. Clear escalation cadence lifts yield 10-20% vs ad-hoc.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.