Resources » Budget Leakage Calculator
Budget Leakage Calculator
The budget leakage calculator estimates the money that quietly drains out of your procurement budget. It sizes off-contract (maverick) buying, the price premium paid when staff buy outside negotiated agreements, and the waste from rush and duplicate orders — then totals the leakage in ringgit per year and as a percentage of your budget. Enter four numbers and the result updates instantly in your browser.
Budget rarely leaks in one big hole — it seeps out through hundreds of small off-contract purchases, each paying a little more than it should, plus the rush and duplicate orders nobody notices. This calculator puts a ringgit figure on that leakage so you can decide whether tightening controls is worth it.
What this calculator asks for
- Annual procurement budget (RM)
- Off-contract (maverick) spend share (%) — Share of spend bought outside agreements.
- Average price premium paid off-contract (%) — How much more off-contract buying costs.
- Rush and duplicate order waste rate (%) — Waste from expedited fees and duplicates.
How it works
- Off-contract (maverick) spend = annual procurement budget × off-contract spend share.
- Price-premium loss = off-contract spend × average price premium paid off-contract.
- Rush / duplicate order waste = annual procurement budget × rush and duplicate order waste rate.
- Total budget leakage = price-premium loss + rush/duplicate waste, also shown as a percentage of your annual budget.
Frequently Asked Questions
What is budget leakage?
Budget leakage is spend that delivers less value than it should because it slips past your controls — off-contract buying that misses negotiated prices, small overpayments across many transactions, and waste from rushed or duplicated orders. Individually each is minor; collectively it can be several percent of the budget.
What is off-contract or maverick spend?
Maverick spend is buying that happens outside your agreed suppliers, catalogues or process. It usually pays a higher price, skips approvals and adds admin, which is why it is the largest single source of leakage. Guided buying through one catalogue is the most effective way to reduce it.
How do I plug the leaks?
Route purchases through a single catalogue with pre-negotiated prices, require approvals above a threshold, and give staff an easy compliant option so off-contract buying stops being the path of least resistance. Lapasar Mall's single catalogue and approval workflows are built to close exactly these gaps.
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