Scrap Cost Calculator
Cost units written off, less anything recovered, plus disposal.
In short
Cost units written off, less anything recovered, plus disposal.
Formula: Scrap cost = (Units scrapped × Cost invested per unit) − Salvage recovered + Disposal cost
What this calculator does
Invested cost of scrapped units, less any salvage, plus any disposal cost. The cost per unit is the user's own, not an average.
Use it to turn Currency, Units scrapped, Cost invested in each unit when it was scrapped, Salvage recovered (optional), and the other shown inputs into a checked result you can compare, copy, or rerun with different assumptions.
The page shows the formula, a numeric worked example, and the assumptions that affect this professional & industry calculation.
Inputs and what they mean
- Currency
- — Amounts are shown in the currency you pick. No exchange rate is applied..
- Units scrapped
- — number value.
- Cost invested in each unit when it was scrapped
- — Material, labour and overhead already in the unit at the point it was scrapped..
- Salvage recovered (optional)
- — Optional component. Leave at 0 to exclude it from the result..
- Disposal cost (optional)
- — Optional component. Leave at 0 to exclude it from the result..
- Good units produced (optional)
- — Optional component. Leave at 0 to exclude it from the result. Used to show scrap cost per good unit..
How to use it
- Enter your own figures — the calculator never fills in a rate, price or benchmark for you.
- Press Calculate to see the result.
- Read the formula, variables, assumptions and source below the result before you rely on it.
Formula
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..
Worked example
85 units scrapped part way through
- 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.
- Apply the method: Scrap cost = (Units scrapped × Cost invested per unit) − Salvage recovered + Disposal cost.
- The cost already in the units, less anything recovered, plus disposal.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
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.
Reference: American Society for Quality — Cost of quality — prevention, appraisal and failure costs
Last reviewed:
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.
Formula, source and verification
The cost already invested in scrapped output, less salvage, plus disposal — an internal failure cost.
The question it answers: What is the scrap, the rework and the yield loss on this line actually costing us?
The formula
Scrap cost = (Units scrapped × Cost invested per unit) − Salvage recovered + Disposal cost
- n — Units scrapped
- (count). Units written off.
- c — Cost invested per unit
- (currency). Material, labour and overhead in the unit at the point it was scrapped.
- S — Salvage recovered
- (currency). Optional.
- D — Disposal cost
- (currency). Optional.
- G — Good units produced
- (count). Optional. Used to show scrap cost per good unit.
Units: Currency; counts.
What kind of calculation this is
Deterministic formula. The same inputs always give the same answer. The maths is fixed and does not depend on judgement.
Method
Invested cost of scrapped units, less any salvage, plus any disposal cost. The cost per unit is the user's own, not an average.
Assumptions built into the result
- Industry: Every cost, rate and standard is the figure the user entered, in the currency they chose; no exchange rate is applied.
- Mathematical: Costs and output cover the same period or the same job.
Figures this calculator will never guess for you
- No industry average, benchmark or target cost is supplied.
- No standard rate, wage or material price is assumed on the user's behalf.
- Optional components are excluded from the result when left at zero.
- No acceptable scrap level is implied; the calculation makes no judgement about the rate.
Limitations
- 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.
Source and version
- Standard or reference
- Cost of quality — internal failure cost — ASQ (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.)
- Published source
- American Society for Quality — Quality resources
- Formula version
- Version 1
- Verification
- Reviewed against the cited source on
- How much weight the source carries
- Standards or government
- Applies to
- Currency
- Amounts stay in the currency you choose; no exchange rate is applied.
Cite this page
Free Calculator. (2026, September 16). Scrap Cost Calculator. https://freecalculator.tech/tools/scrap-cost-calculator
"Scrap Cost Calculator." Free Calculator, 16 Sept. 2026, https://freecalculator.tech/tools/scrap-cost-calculator.
Scrap Cost Calculator — Free Calculator, https://freecalculator.tech/tools/scrap-cost-calculator
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