Estimate the return on investment of hiring a collection agency. Enter your debt details, adjust recovery and fee assumptions, and instantly see whether collections will pay off compared to writing off the balance.
Enter the total outstanding balance you are considering sending to collections.
How long the debt has been outstanding. Older debts typically have lower recovery rates and higher agency fees.
Pre-filled from industry recovery data. Ranges from ~12% for old debts to ~55% for fresh accounts. Adjust based on your specific situation.
The agency's contingency fee as a percentage of the amount collected. Pre-filled based on debt age from industry averages.
Total amount the agency is estimated to collect from the debtor
The collection agency's contingency fee deducted from the recovery
What you keep after the agency's fee is deducted
Debt buyers purchase accounts for 4–10 cents on the dollar. You get a lump sum immediately but recover far less.
Using a collection agency nets you an estimated $8,013 more than selling to a debt buyer (comparing your $9,763 net recovery against the ~$1,750 midpoint buyer offer).
Disclaimer: This calculator provides estimates for informational purposes only and does not constitute financial advice or a guarantee of results. Actual recovery rates depend on debtor circumstances, debt age, documentation quality, and the collection agency's effectiveness. Contact agencies directly for accurate projections based on your specific accounts.
This ROI calculator helps you evaluate whether hiring a collection agency is financially worthwhile for your outstanding debts. It compares the expected net recovery against the alternative of writing off the debt entirely.
The default fee percentage is pre-filled using industry-average contingency rates from our fee comparison tool, adjusted based on the age of your debt. Older debts typically carry higher agency fees because they are more difficult to collect.
The default recovery rate is pre-filled using industry recovery rate data from ACA International, the CFPB, and the Commercial Law League of America, adjusted for the age of your debt. For the most accurate projections, request recovery rate estimates from agencies that specialize in your debt type.