How the calculation works
Each tier gets the approach that meets both of its targets: the stronger of the approach its RPO needs and the approach its RTO needs. The results say which target set it and what each target needs on its own. The bands have hard edges: a target close to one, such as a 14-minute or 16-minute RTO, deserves a look at the approaches on both sides.
These are ITBroker.com’s planning bands, not a standard or a vendor figure:
| Approach | RPO it typically fits | RTO it typically fits |
|---|---|---|
| Nightly backup | 24 hours or more | 24 hours or more |
| Frequent snapshots | 15 minutes to under 24 hours | 4 hours to under 24 hours |
| Continuous replication | above zero, under 15 minutes | (sets the RPO only) |
| DRaaS or a warm standby site | (with replication) | 15 minutes to under 4 hours |
| Synchronous replication | zero | (sets the RPO only) |
| Active-active | (any) | under 15 minutes |
- Nightly backup: a copy once a day; up to a day of changes can be lost and recovery is a restore.
- Frequent snapshots: point-in-time copies every few minutes to hours, with copies kept off the primary storage, so recovery is a rollback rather than a full restore.
- Continuous replication: changes copied to a second site as they happen, so only seconds to minutes of data are at risk. It sets how much data is at risk, not how fast you’re back.
- DRaaS or a warm standby site: replicated systems ready to start at a recovery site, run by a provider or by you, so recovery is a tested failover.
- Synchronous replication: every write reaches a second site before it’s confirmed, so no committed data is lost. A short RTO as well needs that copy ready to run, as with DRaaS or a standby site.
- Active-active: two live sites run the service at once, so losing one costs little or no time.
Downtime cost at the target = downtime cost per hour × target RTO in hours: what one incident costs if recovery takes the full RTO. With a current RTO, the same sum at the current RTO shows what the gap is worth. The total adds every tier, as if one event took them all down at once. Lost data isn’t priced.
Gap = current RPO − target RPO, and current RTO − target RTO. A positive gap means today’s setup falls short by that much.
Targets are whole minutes, hours or days, or 0. Tiers are numbered, not named, so a shared link carries only numbers.
Worked example
Three tiers, with the current setup a nightly backup for tiers 1 and 2:
| Tier | Cost per hour | Target RPO | Target RTO | Current RPO | Current RTO |
|---|---|---|---|---|---|
| 1 | $20,000 | 5 min | 1 h | 24 h | 48 h |
| 2 | $5,000 | 4 h | 8 h | 24 h | 24 h |
| 3 | $500 | 24 h | 3 days | — | — |
- Tier 1: a 5-minute RPO needs continuous replication; a 1-hour RTO needs DRaaS or a warm standby site. The RTO is the stronger requirement, so the tier needs DRaaS or a warm standby site. Downtime at the target: 1 h × $20,000 = $20,000. Today’s RPO is 23 h 55 min longer than the target and today’s RTO 1 day 23 h longer; downtime at today’s 48-hour RTO would cost $960,000.
- Tier 2: both targets fall in the frequent snapshots band. Downtime at the target: 8 h × $5,000 = $40,000, against $120,000 at today’s 24 hours.
- Tier 3: both targets fit a nightly backup. Downtime at the target: 72 h × $500 = $36,000.
If one event took all three down for their full target RTOs, downtime would cost about $96,000.

