# Scrap Cost Calculator

> Cost units written off, less anything recovered, plus disposal.

Page: https://freecalculator.tech/tools/scrap-cost-calculator
Last reviewed: 2026-09-16

## Formula

Scrap cost = (Units scrapped × Cost invested per unit) − Salvage recovered + Disposal cost

- Scrap cost = (Units scrapped × Cost invested per unit) − Salvage recovered + Disposal cost.
- Inputs used: Currency, Units scrapped, Cost invested in each unit when it was scrapped, Salvage recovered (optional), Disposal cost (optional), Good units produced (optional).
- Edge handling: Units scrapped is required.; Units scrapped cannot be negative.; Units scrapped must be no more than 1000000000000.; Cost invested in each unit when it was scrapped is required.; Cost invested in each unit when it was scrapped cannot be negative..

## Inputs

- Currency
- Units scrapped
- Cost invested in each unit when it was scrapped
- Salvage recovered (optional)
- Disposal cost (optional)
- Good units produced (optional)

## Worked example: 85 units scrapped part way through

The cost already in the units, less anything recovered, plus disposal.
1. Start with Currency: USD, Units scrapped: 85, Cost invested in each unit when it was scrapped: 46.20, Salvage recovered (optional): 0, Disposal cost (optional): 0, Good units produced (optional): 0.
2. Apply the method: Scrap cost = (Units scrapped × Cost invested per unit) − Salvage recovered + Disposal cost.
3. The cost already in the units, less anything recovered, plus disposal.

## Common questions

### Where does this formula come from?

ASQ cost of quality — scrap, rework and yield loss are internal failure costs: the cost already invested in output that cannot be sold as it is, less anything recovered. See the source link on this page.

### What kind of calculation is this?

The cost already invested in scrapped output, less salvage, plus disposal — an internal failure cost. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.

### What are its limits?

Arithmetic over the figures entered — it cannot tell whether the costs, standards or allowances behind them are right. A target cost, an industry benchmark and the organisation's own standard are different things; only the figures entered are used. The scrap rate itself is a separate measure; this page costs the scrap, it does not judge the rate.

### How do I use the Scrap Cost Calculator?

Enter the required values for Currency, Units scrapped, Cost invested in each unit when it was scrapped, Salvage recovered (optional), Disposal cost (optional), and the other fields shown. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

### What formula does the Scrap Cost Calculator use?

Scrap cost = (Units scrapped × Cost invested per unit) − Salvage recovered + Disposal cost The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.

### Can the Scrap Cost Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.

## Limitations and assumptions

- Inputs outside the supported range are rejected rather than forced into a result.
- The result depends on the values you enter for this scrap cost calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Sources

- American Society for Quality — https://asq.org/quality-resources/cost-of-quality

## Cite this page

- APA: Free Calculator. (2026, September 16). Scrap Cost Calculator. https://freecalculator.tech/tools/scrap-cost-calculator
- MLA: "Scrap Cost Calculator." Free Calculator, 16 Sept. 2026, https://freecalculator.tech/tools/scrap-cost-calculator.
- Link: Scrap Cost Calculator — Free Calculator, https://freecalculator.tech/tools/scrap-cost-calculator