Producer Recoup Waterfall
Apply a simple producer recoupment waterfall to supplied revenue and costs.
Description
A recoupment waterfall applies an explicit priority to available revenue.
A recoupment waterfall applies an explicit priority to available revenue. Here operating costs come first, investor capital next and producer points apply only to remaining profit.1
Apply a simple producer recoupment waterfall to supplied revenue and costs.
When to use Producer Recoup Waterfall
Use this tool to apply a simple producer recoupment waterfall to supplied revenue and costs.
Prepare production measurements or checklist records for one planning period. Confirm units, staffing assumptions and caller-selected criteria before running the calculation.
How to use Producer Recoup Waterfall and understand its results
- Prepare production measurements or checklist records for one planning period. Confirm units, staffing assumptions and caller-selected criteria before running the calculation.
- Enter grossRevenue, operatingCosts, investorCapital, producerPointPercent using the field table and calculation rules, then run the tool.
- Read netRevenue, investorRecoupment, remainingProfit, producerPointPayment. 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 |
|---|---|---|---|
| grossRevenue | Gross producer revenue | number; minimum: 0 | Required |
| operatingCosts | Operating costs | number; minimum: 0 | Required |
| investorCapital | Unrecouped investor capital | number; minimum: 0 | Required |
| producerPointPercent | Producer point percentage (%) | number; minimum: 0; maximum: 100 | Required |
Enter nonnegative revenue, costs and investor capital in one currency with producer percentage in 0–100. Return floored net revenue, investor recoupment, residual profit and producer payment. Excess operating costs do not become a negative net output.
net=max(0,gross−costs); recoup=min(net,capital); producerPayment=(net−recoup)×points/100 Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| netRevenue | Revenue after operating costs | number |
| investorRecoupment | Investor recoupment | number; minimum: 0 |
| remainingProfit | Profit after recoupment | number; minimum: 0 |
| producerPointPayment | Producer point payment | number; minimum: 0 |
{
"input": {
"grossRevenue": 1000,
"operatingCosts": 200,
"investorCapital": 500,
"producerPointPercent": 10
},
"output": {
"netRevenue": 800,
"investorRecoupment": 500,
"remainingProfit": 300,
"producerPointPayment": 30
}
}Limitations and assumptions
This simple waterfall does not evaluate agreements, prior recoupment, tax, fees or cumulative distributions. Supply remaining capital if that is the intended scenario.
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 Co-Production Cost Allocation: Allocate shared co-production costs by caller-supplied partner weights. For a complementary task, use Weekly Recoupment: Calculate weekly recoupment and a simple remaining-capital horizon.
References
-
Producer Recoup Waterfall — tool.io
Similar or alternative tools
- Co-Production Cost Allocation
Allocate shared co-production costs by caller-supplied partner weights.
- Weekly Recoupment
Calculate weekly recoupment and a simple remaining-capital horizon.