How do you calculate material recovery value?

Multiply recovered material (kg) by market value ($/kg) by saleable share (%), then subtract fixed processing cost. With 18,000 kg at $0.64/kg, an 81% saleable share and $2,400 of cost, gross saleable value is $9,331.20 and net recovery value is $11,731.20 in this model.

What is a good material recovery value per kg?

Value per recovered kg depends entirely on the commodity, but it should clearly exceed your fully loaded handling cost per kg. In the worked example it lands at about $0.65/kg; clean metals run far higher while mixed plastics often fall below break-even.

Why does saleable share matter so much?

Because contamination and off-spec material are dead weight you still paid to collect. Dropping the saleable share from 81% to 60% on an 18,000 kg stream erases thousands in gross value even though the price per kg never changed.

Should I subtract or add the fixed cost?

It is a cost you subtract from gross value. The formula adds a negative adjustment, so enter the sorting, baling, assay and broker cost as the amount to remove from gross saleable value to reach the true net.

Material recovery value vs scrap revenue: what is the difference?

Scrap revenue is the headline price times tonnage. Recovery value is net of yield losses and processing cost, so it is always lower and is the figure you should actually use to judge profitability.

How often should I rerun this calculation?

Rerun it whenever commodity prices move materially or whenever your contamination rate changes, since both directly swing the net value. Many operators recalculate weekly against published index prices.

Circular Economy, Recycling & Remanufacturing calculator

Material Recovery Value Calculator

Material Recovery Value is the net dollars a recovery stream actually returns once you account for how much recovered material is genuinely saleable and what it costs to sort, bale, assay and broker it. Recycling operators, MRF managers and remanufacturing buyers use it to decide whether a scrap or post-consumer stream is worth processing or whether it should go to landfill. It is the number that separates a profitable bale of copper from a contaminated mixed-plastic load that costs more to clean than it sells for. Getting it right protects margin on every commodity contract you sign.

What this calculator does

Estimate value from recovered recyclable material using recovered weight, market value per unit, saleable recovery share, and fixed processing cost.
a team needs to decide whether a scrap stream should be separated, sold, or processed further for a material stream, batch, or shipment
It computes the net value of a recovered material stream after applying saleable yield to the market price and subtracting fixed processing and brokerage costs.

Formula used

Gross saleable material value = recovered material from the stream × market value of recovered material × saleable recovered-material share
Net material recovery value = gross saleable material value + fixed sorting, baling, assay, or broker cost to subtract

Inputs explained

Recovered material from the stream:
Market value of recovered material:
Saleable recovered-material share:
Fixed sorting, baling, assay, or broker cost to subtract:

How to use the result

Use it before committing a stream to recovery, when negotiating broker offtake prices, or when comparing two incoming feedstocks for the same line.
Market value per kg is a spot figure that moves constantly, so a value that looks positive today can flip negative when commodity prices fall.

Common questions

How do you calculate material recovery value? Multiply recovered material (kg) by market value ($/kg) by saleable share (%), then subtract fixed processing cost. With 18,000 kg at $0.64/kg, an 81% saleable share and $2,400 of cost, gross saleable value is $9,331.20 and net recovery value is $11,731.20 in this model.
What is a good material recovery value per kg? Value per recovered kg depends entirely on the commodity, but it should clearly exceed your fully loaded handling cost per kg. In the worked example it lands at about $0.65/kg; clean metals run far higher while mixed plastics often fall below break-even.
Why does saleable share matter so much? Because contamination and off-spec material are dead weight you still paid to collect. Dropping the saleable share from 81% to 60% on an 18,000 kg stream erases thousands in gross value even though the price per kg never changed.
Should I subtract or add the fixed cost? It is a cost you subtract from gross value. The formula adds a negative adjustment, so enter the sorting, baling, assay and broker cost as the amount to remove from gross saleable value to reach the true net.
Material recovery value vs scrap revenue: what is the difference? Scrap revenue is the headline price times tonnage. Recovery value is net of yield losses and processing cost, so it is always lower and is the figure you should actually use to judge profitability.

Last reviewed 2026-05-12.