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Payment Plan Program ROI Calculator

Payment plans convert delinquent tenants to performing over time.

%
%
$

Recovery improvement

$66,825

Plan recovery value

$151,875

Traditional recovery value

$85,050

How the math works

Plan recovery − traditional = improvement.

45 × $4.5k = $202.5k delinquent. 75% plan vs 42% traditional = $148k plan − $85k traditional = $63k improvement.

How to Use

  1. Enter delinquent tenants count.
  2. Enter traditional recovery rate %.
  3. Enter payment plan recovery rate %.
  4. Enter avg delinquency amount.
  5. Read recovery improvement.

Frequently Asked Questions

Plan structure?

12-18 month installments added to current rent. 10-25% of current rent as installment. Auto-draft required. Default causes plan termination + immediate eviction. Clear policy and strict enforcement.

Recovery improvement?

Traditional collections: 35-50% recovery on delinquent. Payment plans with auto-draft: 70-85%. Improvement depends heavily on tenant ability to continue paying current rent. Plans fail if tenant loses income.

Risks?

Tenant defaults on plan + current rent simultaneously. Requires ongoing monitoring. Legal complexity around plan modifications. Fair housing compliance in offering plans. Not all tenants qualify — document criteria.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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