Free tool
Scheme leakage calculator
Trade-promotion and scheme budgets quietly leak money — to over-claims, duplicates, unclaimed accruals and manual errors. Estimate what it could be costing you, then see how to close the gap.
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Estimate your annual leakage
₹5,00,00,000 per year
Industry estimates commonly put scheme leakage at 3–7%. Slide to match your own view.
Estimated annual leakage
₹25,00,000
Recovering even half of that would be ₹12,50,000 a year.
This is an estimate for illustration, not a guarantee — your actual leakage depends on your schemes, controls and reconciliation process.
Where scheme leakage comes from
- Over-claims and duplicates. A distributor claims more than the agreement allows, or the same claim twice — and a manual check misses it.
- Unclaimed accruals. Rebates you owe but never get claimed cleanly still distort your provisions and can resurface later.
- Manual errors. Re-keying claim files and looking up the right slab or tier by hand, every cycle, for every partner.
- Slow reconciliation. Disputed money sits unresolved while spreadsheets are tied out line by line.
How to close the gap
The fix is to take schemes out of spreadsheets: accrue them automatically, reconcile each claim against the agreement it falls under so over-claims and duplicates surface on their own, and settle with GST-compliant credit notes and a full audit trail. See claims & deduction reconciliation, the software buyer’s guide, or start a free trial below.
Frequently asked questions
What is scheme leakage?
Scheme leakage is the share of your trade-promotion or scheme budget that is lost rather than correctly settled — through over-claims and duplicate claims, accruals that are never claimed, manual spreadsheet errors, and money tied up by slow reconciliation. It is the gap between what you intended to pay and what was actually, correctly settled.
How much do companies typically lose to scheme leakage?
Industry estimates commonly put it at 3–7% of the scheme budget, though the real figure depends on your controls, scheme complexity and how claims are reconciled. The calculator defaults to 5% and lets you adjust it to your own view.
How is the estimate calculated?
It is simply your annual scheme budget multiplied by the leakage rate you choose. It is an illustration to size the opportunity, not a precise measurement of your business.
How do I reduce scheme leakage?
Accrue schemes automatically instead of in spreadsheets, reconcile every distributor claim against the agreement it falls under (so over-claims and duplicates are caught), and settle with GST-compliant credit notes and a clear audit trail. That is exactly what ClaimDS is built to do.
See it on your own data in 60 seconds
Start a free trial and import your customers and products, or launch an instant demo sandbox pre-loaded with realistic claims.