How do you calculate part salvage value?

Multiply usable parts harvested by salvage value per part, then by the expected grading pass rate to get gross value, and subtract fixed teardown cost. With 5,200 parts at $9.75, a 57% pass rate, and $3,500 of teardown cost, gross value is $28,899 and net salvage value is $32,399 in this model's convention.

Why does the grading pass rate matter so much?

Because rejected parts have zero resale value but still cost labor to handle. Dropping the pass rate from 57% to 45% on 5,200 parts at $9.75 cuts gross value by roughly $6,000 — often the entire margin on a teardown job.

What is a good salvage value per harvested part?

There is no universal number, but the per-harvested-part figure (here $6.23) is the metric to watch — it already blends in the grading losses. If it falls below your fully loaded handling cost per part, the teardown loses money.

Salvage value vs scrap value — what's the difference?

Scrap value is the material-recycling price (per pound of steel, copper, or aluminum). Salvage value is the higher resale price of an intact, graded, functional component. Part salvage only beats scrap when grading yield is high enough to cover teardown labor.

Should I include cleaning and testing in the fixed cost?

Yes. The fixed-cost field is meant to capture all the non-per-part overhead of preparing a core: teardown labor, cleaning, functional testing, and cataloging. Leaving testing out is the most common way shops overstate net value.

How do I improve part salvage value?

Raise the grading pass rate by sourcing cleaner cores, negotiate higher per-part resale prices for high-demand SKUs, and drive down fixed teardown cost through better disassembly fixturing. The first lever usually has the biggest impact.

Circular Economy, Recycling & Remanufacturing calculator

Part Salvage Value Calculator

Part Salvage Value is the net dollar value a remanufacturer or core processor recovers from harvesting reusable components out of end-of-life products, after accounting for grading yield and the fixed cost of teardown. Disassembly engineers, core buyers, and reverse-logistics planners use it to decide whether a returned core stream is worth tearing down versus shredding for material. It matters because the headline count of 'usable' parts always overstates reality — graders reject worn, cracked, or out-of-spec parts — and the labor to disassemble, clean, test, and catalog can quietly erase the margin. Running this number before committing a teardown line keeps you from processing cores at a loss.

What this calculator does

Estimate value from harvested parts that can be reused, resold, repaired, or returned to service from teardown operations.
a team needs to decide which components to harvest, stock, repair, resell, or scrap for a teardown batch, product family, or harvested-part program
It computes the net salvage value of a batch of harvested parts by applying an expected grading pass rate to gross value, then subtracting fixed teardown and processing cost.

Formula used

Gross usable-part salvage value = usable parts harvested × salvage value per usable part × parts expected to pass salvage grading
Net part salvage value = gross usable-part salvage value + fixed teardown, cleaning, testing, or cataloging cost to subtract

Inputs explained

Usable parts harvested:
Salvage value per usable part:
Parts expected to pass salvage grading:
Fixed teardown, cleaning, testing, or cataloging cost to subtract:

How to use the result

Use it when evaluating whether to disassemble a core or returned-product stream for resale of individual components rather than scrapping it.
It assumes a single blended salvage price and one pass rate; mixed-grade parts with very different resale values or yields need to be split into separate runs.

Common questions

How do you calculate part salvage value? Multiply usable parts harvested by salvage value per part, then by the expected grading pass rate to get gross value, and subtract fixed teardown cost. With 5,200 parts at $9.75, a 57% pass rate, and $3,500 of teardown cost, gross value is $28,899 and net salvage value is $32,399 in this model's convention.
Why does the grading pass rate matter so much? Because rejected parts have zero resale value but still cost labor to handle. Dropping the pass rate from 57% to 45% on 5,200 parts at $9.75 cuts gross value by roughly $6,000 — often the entire margin on a teardown job.
What is a good salvage value per harvested part? There is no universal number, but the per-harvested-part figure (here $6.23) is the metric to watch — it already blends in the grading losses. If it falls below your fully loaded handling cost per part, the teardown loses money.
Salvage value vs scrap value — what's the difference? Scrap value is the material-recycling price (per pound of steel, copper, or aluminum). Salvage value is the higher resale price of an intact, graded, functional component. Part salvage only beats scrap when grading yield is high enough to cover teardown labor.
Should I include cleaning and testing in the fixed cost? Yes. The fixed-cost field is meant to capture all the non-per-part overhead of preparing a core: teardown labor, cleaning, functional testing, and cataloging. Leaving testing out is the most common way shops overstate net value.

Last reviewed 2026-05-12.