Put your own store numbers into the 2027 scenario.

The gross is already in the profit

The starting $100,000 net profit already includes the contribution from the $1 million F&I gross, after the business's costs. Subtract only the gross lost in the scenario. Do not add the entire $1 million to net profit or deduct the gross that remains. Revenue supplies the margin denominator: $100,000 ÷ $10 million = 1%. It does not determine the loss amount.

What the aggregate percentages mean

The 10%, 30% and 50% buttons are sensitivity assumptions: smaller, middle and larger losses chosen to show how the calculation responds. They have no estimated probability. No rule requires these losses. The 0% option keeps product gross unchanged while retaining your entered costs and offsets.

The proposed disclosure test divides qualifying compensation by client price and asks whether it exceeds 30% of client price. A 30% gross-loss scenario instead removes 30% of entered annual F&I gross. Different denominator, different purpose: crossing the disclosure line does not establish a 30% loss.

How the six-row starting example works

Before edits, the invented product rows distribute $1 million of annual gross: warranty $400,000; GAP $100,000; creditor products $50,000; ancillary protection $150,000; finance reserve $200,000; other retained F&I income $100,000. This is a worked example, not a measured product mix or a legal classification of those products.

The first four rows start at 80% of the sales × 80% of the gross per retained contract = 64% of baseline gross. In other words, a 20% sales reduction and a 20% per-contract gross reduction combine into a 36% gross reduction, not 40%. The $700,000 in those rows becomes $448,000. Finance reserve and other income stay at 100%, adding $300,000 retained. The starting total is $748,000 retained and $252,000 lost. Edited rows replace this specimen; the live calculation beside the result always uses the current entries.

Replace the specimen with your records

Use your trailing 12 months of revenue, net profit, contract counts and product gross from reconciled dealer records. Use the same period and accounting basis throughout, with gross net of expected cancellations and chargebacks. Enter each income stream once, including finance reserve and unaffected income. Enter only additional costs and savings caused by the scenario; do not deduct costs already included in current net profit.

This compares annual gross on that common basis. A change in cash received this year can reflect payment timing without proving a change in lifetime commission. Dealer-specific timing and total compensation require the provider agreement, payment schedule and cancellation/chargeback terms. Neither Quebec's premium-payment rules nor B.C.'s disclosure proposal supplies the loss percentages used here.

Why the other assumptions start where they do

• People: $90,000 payroll per role is an illustrative fully loaded annual cost, not a wage survey or staffing forecast. It converts modelled profit pressure into a comparable payroll amount.
• Financing: $2 million of financed optional-product principal is an illustrative starting volume. Its separate 50% starting loss is a sensitivity assumption, not a lending prediction. The 2% reserve is a hypothetical multiplier; the cited FCAC source explains the mechanism but does not establish a standard Canadian percentage. These financing outputs do not create another deduction from dealer profit.
• Borrowing:6.55% is the Bank of Canada's June 2026 volume-weighted rate for newly advanced chartered-bank auto loans, a dated reference rather than a current quote or an RIA response. Eighty-four months is a selected seven-year scenario term. The linked reporting covers an "84 months and greater" category; it does not establish an average term of exactly 84 months.
• Tax: both income-tax rates start at zero so no tax loss is inferred from an unsupplied rate. Enter rates only for a sensitivity exercise appropriate to the entity.
• Compliance: the $1,000 application and $750 annual licence defaults come from proposed fee maxima, with $750 using the smallest representative band. They are not enacted fees or an invoice. The annual result deducts entered recurring licence, E&O and labour costs. The first-year profit result then deducts application and training costs once, without deducting recurring costs a second time. Blank training, E&O and labour inputs are unknown, not evidence of zero cost.
• Offsets and other costs: each starts at zero because no dealer-specific amount is supplied. Enter documented annual amounts for your scenario, excluding costs entered under compliance.

Source links for the borrowing, reserve-mechanics and proposed-fee references are in "Edit scenario inputs" under "Open people, lender, tax, and compliance assumptions."