Leak-Device Discount
Calculate leak-device premium discount and simple annual benefit.
Description
A leak-device benefit model combines premium discount with expected avoided annual loss, then subtracts annual device cost.
A leak-device benefit model combines premium discount with expected avoided annual loss, then subtracts annual device cost. Its payback output uses the same cost input.1
Calculate leak-device premium discount and simple annual benefit.
When to use Leak-Device Discount
Use this tool to calculate leak-device premium discount and simple annual benefit.
Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
How to use Leak-Device Discount and understand its results
- Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
- Enter basePremium, deviceDiscountPercent, deviceAnnualCost, expectedAvoidedLoss using the field table and calculation rules, then run the tool.
- Read premiumDiscount, discountedPremium, annualNetBenefit, paybackYears. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| basePremium | Base premium | number; minimum: 0 | Required |
| deviceDiscountPercent | Leak-device discount (%) | number; minimum: 0; maximum: 100 | Required |
| deviceAnnualCost | Annual device cost | number; minimum: 0 | Required |
| expectedAvoidedLoss | Expected avoided loss | number; minimum: 0 | Required |
Enter nonnegative base premium/cost/avoided loss and discount 0–100. Return discount, discounted premium, net benefit and paybackYears. Zero annual benefit produces zero as a placeholder.
benefit=base×discount/100+avoidedLoss; net=benefit−annualCost; payback=annualCost/benefit Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| premiumDiscount | Premium discount | number; minimum: 0 |
| discountedPremium | Discounted premium | number; minimum: 0 |
| annualNetBenefit | Annual net benefit | number |
| paybackYears | Simple payback period (years) | number; minimum: 0 |
{
"input": {
"basePremium": 1000,
"deviceDiscountPercent": 10,
"deviceAnnualCost": 100,
"expectedAvoidedLoss": 100
},
"output": {
"premiumDiscount": 100,
"discountedPremium": 900,
"annualNetBenefit": 100,
"paybackYears": 0.5
}
}Limitations and assumptions
No device performance or avoided loss is estimated. The payback formula uses annual cost rather than a separate upfront investment and is not a discounted cash-flow model.
Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Wind-Mitigation Credit: Apply wind-mitigation credits subject to a caller-supplied cap. For a complementary task, use Supplier Dependency Loss: Estimate contingent business-interruption loss from supplier dependency.
References
-
Leak-Device Discount — tool.io
Similar or alternative tools
- Wind-Mitigation Credit
Apply wind-mitigation credits subject to a caller-supplied cap.
- Supplier Dependency Loss
Estimate contingent business-interruption loss from supplier dependency.