Failed Payment & Dunning Recovery Calculator
Calculate recoverable MRR from failed credit card charges using automated smart retries and dunning emails. Free interactive SaaS recovery tool.
Calculated Results
Recovered MRR Monthly
$1350.00
Annualized ARR Saved
$16200.00
Unrecovered Net Loss
$1650.00
About this tool
Failed payments represent the most frustrating form of subscription loss because they do not reflect customer dissatisfaction. Involuntary churn occurs when legitimate subscribers want to keep using your software, but their credit card fails due to temporary bank declines, network timeouts, daily spending limits, or routine card expiration. Without automated smart retries and dunning communications, these accounts quietly churn out. A well-designed dunning workflow can recover a meaningful share of those failed charges. Use this calculator to model the monthly and annual recurring revenue you can recover through disciplined dunning.
How It Works
- 1Input your total monthly failed billing MRR (e.g. $2,000 in declined charges).
- 2Enter your estimated or targeted recovery rate percentage.
- 3Review your projected monthly recovered MRR, annualized ARR restored, and net unrecovered loss.
Formula & Math
Transparent LogicRecovered MRR = Monthly Failed MRR × (Recovery Rate% / 100)
Worked Practical Example
A company records $5,000 in declined charges each month and achieves a 45% recovery rate through smart dunning.
Calculation / Steps
Recovered = $5,000 × 0.45 = $2,250/mo. Annualized = $2,250 × 12 = $27,000.
Expected Result
$2,250 MRR recovered each month ($27,000 ARR protected from involuntary churn).
Frequently Asked Questions
What is the primary cause of failed subscription payments?+
Card expiration (cards expire every 3 years), insufficient funds, daily spending limits, and bank fraud algorithms flagging automated recurring charges.
What is smart retry logic?+
Smart retry algorithms use machine learning to retry cards at optimal times (e.g. right after common payroll deposit dates) rather than retrying blindly.
How does dunning differ from voluntary churn reduction?+
Dunning recovers passive billing failures (expired cards); cancellation interception (like BoolBul) saves customers actively clicking the cancel button.
Automate retention on your cancel button
While BoolBul solves voluntary churn at the cancel button, monitoring failed payment recovery ensures your back-end billing pipeline remains healthy.
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