Debt Recovery Calculator
The recovery rate everyone quotes is the gross figure: collected divided by outstanding. The figure that matters is the net: what is left after the collection agency’s 15–40% contingency fee and your fixed costs. Enter total debt, amount recovered, agency fee, and fixed recovery costs: the tool reports gross rate, net recovered, net rate, and the unrecovered balance, plus an expected-recovery estimate for a debt portfolio by age.
Age benchmarks are industry averages, not a guarantee for any portfolio. Agency fees typically run 15–40% of amounts recovered.
Quick Answer
On $100,000 outstanding with $45,000 recovered, a 25% agency fee and $2,000 fixed costs: the gross recovery rate is 45.0%, but the net recovered is $31,750 (31.75% net rate) with $55,000 unrecovered. At the 3–12-month benchmark (30%), a $100,000 book is expected to yield about $30,000.
Worked example, checked against this exact tool
$100,000 outstanding, $45,000 recovered, 25% agency fee, $2,000 fixed costs, debt aged 3–12 months: gross recovery rate = 45.0%; agency fee = $11,250; net recovered = $31,750; net recovery rate = 31.75%; unrecovered = $55,000; expected recovery at the age benchmark (30%) = $30,000. The inputs are prefilled above: click Calculate to reproduce every figure.
Gross vs net: the number that decides
A 45% gross rate sounds like a win until the agency takes a quarter and legal costs take more: 31.75% net is the real return on the outstanding balance. Always compare agencies on net recovery, not their quoted contingency percentage: a 20% fee with a 25% recovery rate beats a 35% fee with a 30% rate. If you are on the other side of the table trying to rebuild after collections, a credit recovery calculator models the climb back.
Why debt age dominates
Fresh accounts under 90 days recover 40–60%; debts over two years rarely break 10–15%. The expected-recovery estimate uses these industry benchmarks against your outstanding balance, so a $100,000 book of two-year-old debt is realistically a $12,000 book. Fees scale the same way: agencies charge roughly 20–25% on fresh debt but up to 50% on accounts over a year old, because older debts cost far more effort per dollar recovered. Place debts with an agency early: every month of delay is expected value evaporating.
Collect, or sell the debt?
Contingency collection typically nets 10–30% of face value after months of uncertain effort; selling the portfolio outright brings 4–15% immediately with no further work or compliance risk. If your net recovery estimate lands near single digits, a sale price in the low teens may be the better deal: certainty has value. Before placing anything, check what collectors can and cannot do under the Fair Debt Collection Practices Act. For debts where collection costs exceed the expected return, review whether bad-debt relief or a bad-debt provision is the cleaner accounting choice.
The small-debt break-even
Run the fixed-cost math before placing small balances: a $75 debt at 30% contingency nets $52.50 before your admin time, and any skip-tracing or legal spend can push the placement underwater. The tool flags it outright: when fees and costs exceed the recovered amount, it tells you the placement loses money. Bulk placements make small debts viable; one-off placements rarely are.
What competing calculators miss
Most recovery tools stop at the gross rate, the flattering number. This page's edge: net recovery after fees and costs computed inline, the expected-recovery-by-age estimator for portfolio triage, and the collect-vs-sell framing that turns a percentage into a business decision.
Frequently asked questions
How is the recovery rate calculated?+−
Gross: amount recovered ÷ total outstanding × 100. Net: (recovered − fees − costs) ÷ total outstanding × 100.
What do collection agencies charge?+−
Typically a 15–40% contingency fee on amounts recovered, varying with debt age, size, and complexity.
What is a good recovery rate?+−
Industry success rates run 20–30% overall; 40–60% on fresh accounts, 10–15% on debts over two years old.
Gross or net recovery rate?+−
Net. Gross ignores the agency’s cut and your costs; net is what the balance sheet feels.
Should I sell old debt instead?+−
Debt buyers pay roughly 4–15% of face value immediately. If your net recovery estimate is near that range, selling wins on certainty.
When should I place a debt with an agency?+−
Early: recovery rates fall steeply with age. Internal efforts past 90 days rarely beat professional placement.
Is it worth collecting small debts?+−
Often not individually: a $75 debt at 30% contingency nets $52.50 before your admin time. Bulk placements make small debts viable.
Do recovery costs include legal fees?+−
Include them in fixed recovery costs: legal action, skip tracing, and court fees all reduce the net rate.
Can the recovery rate exceed 100%?+−
Only if you recover interest and fees above principal. The tool accepts it; interpret it as principal plus add-ons.
How do I compare two agencies?+−
Run both fee quotes through the tool on the same recovered amount: compare net recovered dollars, not fee percentages.
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References
- How much collection agencies charge: a small-business fee guide – ti3 (accessed 17 October 2026)
- Collection Services: Debt Recovery Options – RecovAsset (accessed 17 October 2026)
- Average Collection Agency Fees: Percentage & Who Pays – Southwest Recovery Services (accessed 17 October 2026)
- What is the Fair Debt Collection Practices Act? – Consumer Financial Protection Bureau (accessed 17 October 2026)
- Debt Collection – Federal Trade Commission (accessed 17 October 2026)
- How To Get Out of Debt – Federal Trade Commission (accessed 17 October 2026)
- Collection Agency Fees: Services, Rates & Hidden Costs – NexaCollect (accessed 17 October 2026)
- Who Pays Collection Agency Costs? Fee Models & Rate Factors Explained – The DailyMoss (accessed 17 October 2026)
- How Much Does It Cost to Send Someone to Collections? – Quebec News Tribune (accessed 17 October 2026)
- Debt Snowball vs Debt Avalanche: Which Strategy Gets You Out of Debt? – PocketGuard (accessed 17 October 2026)