Same baseline. Four different levers.

Starting from this site's own default example — 850 systems, $180 revenue impact per system-hour, 3.5-hour MTTR, 14 incidents a year, 99.9% SLA target — here's what four common reliability investments actually change, run through the same formula.

downtime scenario planning MTTR improvement cost savings SLA target scenario comparison reliability investment scenarios
Scroll for the scenario table
81% Cost reduction from the biggest lever below
0% Change from raising your SLA target alone

Not every lever is worth the same.

All four start from the identical $12,894,840 baseline. Only one input changes per scenario, so you can see each lever's effect in isolation.

Scenario What changes New annual cost
Baseline 850 / $180 / 3.5h / 14 / 99.9% $12,894,840
Halve MTTR 3.5h → 1.75h ≈$6,080,000 (−53%)
Halve incident frequency 14/yr → 7/yr ≈$5,990,000 (−54%)
Raise SLA target only 99.9% → 99.99% $12,894,840 (no change)
Cut frequency below SLA budget 14/yr → 3.5/yr ≈$2,400,000 (−81%)

The fourth row is the one worth remembering.

Three of these scenarios behave predictably. One doesn't, and it's the most common mistake in a reliability budget conversation.

01

MTTR and frequency are close to equally valuable

Halving either one produces almost the same savings here, because both reduce annual outage hours by the same amount — the better lever for your business depends on which is cheaper to actually improve, not which the formula favors.

02

A stricter SLA target alone changes nothing

Raising your target without reducing MTTR or frequency doesn't lower modeled cost at all in this example — the hidden-tax multiplier was already at its cap, so a stricter target only makes your breach measurement look worse, not your actual risk lower.

03

Crossing under your SLA budget has a compounding effect

Cutting frequency enough to fall under the SLA budget doesn't just cut direct cost proportionally — it also collapses the hidden-tax multiplier from its 72% cap down near its 18% floor, producing an 81% total reduction from a 75% input change.

Scenario planning, answered.

Questions that come up when using these scenarios to compare investment options.

Are these figures exact? The baseline figure is the calculator's exact output. The four scenario figures are hand-computed using the identical published formula and rounded to the nearest ten thousand dollars — re-run them yourself on the calculator to confirm.
Why does the SLA-target scenario show zero change? Because the baseline's hidden-tax multiplier was already at its maximum given how far outage hours exceeded even the loosest of the two SLA budgets compared — see how to calculate for the full mechanic.
Should I combine multiple scenarios? Yes — these are shown in isolation for clarity, but real investments often improve MTTR and frequency together, which compounds the savings further than either lever alone.
How do I use this for my own investment options? Pick the input your specific investment would change, run the calculator with and without it, and use the delta as the "savings" side of your business case.

Which lever applies to you?

Run your own baseline, then test the specific change you're considering.

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