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Rework Cost Calculator

Work out rework cost instantly with clear inputs, formula shown and shareable results.

About Rework Cost Calculator

Rework cost is labour hours at the loaded rate plus any additional material. It is an internal failure cost in the cost-of-quality framework, and because rework consumes bottleneck capacity the opportunity cost is often larger than the direct cost shown here.

Formulas

Rework labour

Labour = Units x (Minutes / 60) x Loaded hourly rate

Total rework cost

Total = Rework labour + Extra material

Worked example

With the default values below, Rework Cost Calculator returns Total rework cost of $5,141.33. Change any input above and every figure here is recalculated in your browser.

Inputs used

Units requiring rework
320
Rework labour per unit
22 min
Loaded labour rate
34
Extra material per reworked unit
3.6

Results

Total rework cost
$5,141.33
Rework labour cost
$3,989.33
Extra material cost
$1,152.00
Cost per reworked unit
$16.07

Step by step

  1. 1Values used
  2. 2Rework labour
  3. 3Total rework cost
  4. 4Total rework cost= 5,141.33
  5. 5Rework labour cost= 3,989.33
  6. 6Extra material cost= 1,152.00
  7. 7Cost per reworked unit= 16.07

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why use a loaded rate?

Because rework consumes supervision, facilities and benefits, not just the base wage. A loaded rate is typically 1.3-1.6 times base pay.

Should I add lost capacity?

If the rework happens on a constrained resource, yes — value the displaced production at its contribution margin and add it.

Related Calculators

Rework Cost Calculator – Calculate Total rework cost