[Scrap Cost Calculator]
Calculate the True Cost of Scrap
Enter your production volume, scrap rates, and costs to see the financial impact. Set a target rate to quantify the savings from quality improvements.
Input Parameters
units
%
%
$
$
Annual Scrap Cost
Annual Scrap Cost
$120,000.00
Scrapped Units / mo
500
Material Loss / mo
$4,000.00
Labor Loss / mo
$6,000.00
Current vs Target (Annual)
Current$120,000.00
Target$48,000.00
Potential Savings
Monthly Savings
$6,000.00
Annual Savings
$72,000.00
Reducing scrap from 5% to 2% is a 60% reduction in defects, saving 300 units per month.
How Scrap Cost Works
Annual Scrap Cost = Scrapped Units × (Material + Labor) × 12
Scrapped Units
Total Units
× Scrap Rate
Cost Per Unit
Material Cost
+ Labor Cost
Savings
Current Cost
− Target Cost
[Reduce Scrap]
Track Scrap in Real Time and Catch Defects Earlier.
WorkCell monitors scrap rates by machine, operator, and part number - so you can identify root causes fast and stop bleeding money on defects.