Wastage Cost Calculator
Stage yields multiply.
Cost per good unit
$7.01
91.3% overall yield
Stage yields multiply, so 4%, 3% and 2% waste produce 8.7% overall rather than 9%. The gap is small here and grows quickly as rates or stages increase.
How the Wastage Cost Calculator works
Stage yields multiply rather than adding, so 4%, 3% and 2% waste across three stages produces about 8.7% overall rather than 9%. The gap is small here and grows quickly as rates or stages increase.
Also known as: material waste cost · scrap rate cost calculator · yield loss calculator
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Frequently asked questions
How do I calculate overall yield?
Multiply the yields of each stage. Three stages at 96%, 97% and 98% give 91.3% overall, so you need 1 ÷ 0.913 inputs per good output.
Why not just add the waste rates?
Because each stage's waste applies to what survived the previous one. Adding overstates the loss slightly and understates the input requirement, both in the direction that leaves you short.
Which stage should I improve?
The one with the lowest yield, usually, because it wastes material that has already had value added to it. Late-stage scrap is far more expensive than early-stage scrap.
What is a good overall yield?
Entirely process dependent. What matters is the trend and whether the yield is understood, a process nobody measures usually has a worse yield than anyone assumes.