Abstract: Disclosed is a method and system for classifying a plurality of customer accounts based on a recoverable amount from a customer account. The method includes receiving historical data of the customer account and a user input indicating a selection of a predictive analytics algorithm from a set of predictive analytics algorithms, and building a predictive data model by executing the predictive analytics algorithm on the historical data. The building includes computing a contact index for the customer account and a payment index for the customer account. The building further includes computing a recoverability index based on the contact index, the payment index, and the outstanding amount. The recoverability index denotes the recoverable amount. The method further includes classifying the customer account based on the recoverability index.