Enter the current price paid by the customer ($) and the price the customer is willing to pay to avoid disruption in service ($) into the Value of Lost Load Calculator. The calculator will evaluate the Value of Lost Load.

## Value of Lost Load Formula

The following two example problems outline the steps and information needed to calculate the Value of Lost Load.

**VoLL = PAD – CP**

Variables:

- VoLL is the Value of Lost Load ($)
- CP is the current price paid by the customer ($)
- PAD is the price the customer is willing to pay to avoid disruption in service ($)

## How to Calculate Value of Lost Load?

The following steps outline how to calculate the Value of Lost Load.

- First, determine the current price paid by the customer ($).
- Next, determine the price the customer is willing to pay to avoid disruption in service ($).
- Next, gather the formula from above = VoLL = PAD – CP.
- Finally, calculate the Value of Lost Load.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

current price paid by the customer ($) = 300

price the customer is willing to pay to avoid disruption in service ($) = 500

VoLL = PAD – CP** **= ?