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Scrap Rate Calculator

Work out scrap rate instantly with clear inputs, formula shown and shareable results.

About Scrap Rate Calculator

Scrap rate is scrapped units over units produced, but the number that gets management attention is the net cost: material consumed less any recovery value from resale or remelt. Labour and overhead already absorbed into scrapped units make the true loss higher still.

Formulas

Scrap rate

Scrap % = Units scrapped / Units produced x 100

Net scrap cost

Net cost = Units scrapped x (Material cost - Recovery value)

Worked example

With the default values below, Scrap Rate Calculator returns Scrap rate of 2.81%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Units produced
8,400
Units scrapped
236
Material cost per unit
18.4
Recovery value per scrapped unit
2.1

Results

Scrap rate
2.81%
Net scrap cost
$3,846.80
Value recovered from scrap
$495.60
Saleable units
8,164

Step by step

  1. 1Values used
  2. 2Scrap rate
  3. 3Net scrap cost
  4. 4Scrap rate= 2.81
  5. 5Net scrap cost= 3,846.80
  6. 6Value recovered from scrap= 495.60
  7. 7Saleable units= 8,164

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

Should labour be included?

For a full cost of poor quality, yes — add the labour and overhead absorbed up to the point of rejection. This calculator isolates the material loss.

How is scrap different from waste?

Scrap is rejected product. Waste also covers process trim, offcuts and yield loss that were never going to be product.

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