Scrap Rate Cost Calculator
Put a dollar figure on scrap and rework from your reject rate, part cost, and production volume.
Using this calculator responsibly
The Scrap Rate Cost calculator is an engineering aid for checking a shop-floor estimate before a setup, quote, or process review. Enter values in the units shown, confirm material properties against the applicable specification, and keep a record of the assumptions used. Calculator output does not override machine capacity, tooling limits, part requirements, or a qualified engineer's approval.
Before using a result in production, repeat the calculation with the extreme values allowed by the print or process window. Check that the selected material, thickness, geometry, and safety factor reflect the actual job. If a result approaches a press, die, fastener, or machine limit, stop and verify it with the equipment manufacturer or responsible engineer.
Inputs and results
Read every field label before entering data and avoid mixing inch and metric values. A useful result should be traceable to the job number, revision, material certification, and machine or tooling record. Treat warnings, invalid ranges, and unusual outputs as reasons to inspect the inputs rather than as values to work around.
Scrap and rework quietly drain profit. Multiplying the reject rate by the fully loaded part cost and the volume turns a percentage into real dollars to target.
Formula: Scrap cost = Reject rate × Part cost × Volume
Worked example
- A 2% reject rate, $3.00 part cost, 500,000 parts/yr.
- Scrap cost = 0.02 × 3.00 × 500,000 = $30,000 per year.