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What amount does this contract-progress scenario allocate?

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Use this to model a simple contract-value × progress scenario. Formal revenue recognition can depend on performance obligations, transfer of control, variable consideration and the accounting standard/policy that applies to the entity.

Your planning assumption. This does not establish the accounting recognition method by itself.

Koala's Calculated Result
Progress-based planning amount — not an accounting recognition ruling.

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Add the contract value and the progress percentage you want to model.

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Definition and method

What this calculator answers

Recognised revenue = contract value × delivered fraction — the right balance for milestone-style contracts.

Planning estimate only

Contract value × completion percentage is a simple progress-based planning estimate. Formal revenue recognition can depend on identified performance obligations, transfer of control, variable consideration and the accounting standard that applies to the entity.

Worked example: your figures

The interactive result above is the worked example. Change any input and the same deterministic engine recomputes the answer; this page does not insert a generic example business or silently treat example values as a benchmark.

  • No market benchmark or outcome is silently inserted by this page.

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Frequently asked questions

What is revenue recognition?

Revenue recognition determines when earned revenue is recorded under the accounting policy and standard that applies to the entity. A completion-percentage calculation can be useful for planning, but it is not automatically the correct accounting treatment for every contract.

Revenue Recognition

Why cap the fraction 0–1?

A completion ratio > 100% means you are claiming revenue you have not earned; < 0 means you are booking nothing while delivering. Either is an audit red flag — bound the fraction between 0 and 1 for the calculation.

Revenue Recognition

How does billing relate to recognition?

Recognition = earned (per delivery). Billing = invoiced (per the schedule). Cash = collected (per the customer). A contract can have all three at different fraction points — the bridge above ties them together.

Revenue Recognition

What about deposits and milestone billings?

Tie the recognition to earned milestones and the cash to collected deposits. A 30% deposit on signature is cash but no recognition; a 70% completion invoice is both. Align schedule, recognition and cash separately.

Revenue Recognition

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.