Scrap Rate & Cost Calculator
Calculate annual scrap cost from defect rate, material value, and production volume to quantify waste impact.
Inputs
units
units
$
$
units
Results
Annual Scrap Cost
$100,000.00
≈ 9 years of state college
Scrap Rate2.5%
Yield Rate97.5%
Annual Defects12,500 units
Cost per Defect$8.00
Monthly Scrap Cost$8,333.33
Cost of Quality2.5%
How to Use This Calculator
- Enter the total units produced in the period.
- Input the number of scrapped units and the material cost per unit.
- Set the labor and overhead cost absorbed into each scrapped part.
- Review the scrap rate percentage and total cost of scrap for the period.
- Identify top scrap reason codes and focus defect elimination efforts on the highest-cost causes.
How the result changes with Total Units Produced (Sample)
| Total Units Produced (Sample) | Annual Scrap Cost |
|---|---|
| 100,001 | $800.00 |
| 350,001 | $400.00 |
| 650,000 | $0.00 |
| 900,000 | $0.00 |
What each input means
- Total Units Produced (Sample)
- Sample batch size to calculate scrap rate from.
- Defective Units (Sample)
- Number of scrapped or rejected units in the sample.
- Material Cost per Unit
- Raw material cost for each unit produced.
- Labor Cost per Unit
- Direct labor cost per unit.
- Annual Production Volume
- Total expected units produced per year.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersTotal Units Produced (Sample) = 1000, Defective Units (Sample) = 25, Material Cost per Unit = 5, Labor Cost per Unit = 3 = 5 input(s) provided
- Calculate Annual Scrap CostAnnual Scrap Cost100000 = $100,000
- Calculate Scrap RateScrap Rate2.5 = 2.5%
- Calculate Yield RateYield Rate97.5 = 97.5%
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