Circular Economy, Recycling & Remanufacturing worked example

Part Salvage Value at 66% parts expected to pass salvage grading: a worked example

What does the result look like when parts expected to pass salvage grading reaches 66%? The full calculation is worked below with real intermediate numbers. a team needs to decide which components to harvest, stock, repair, resell, or scrap for a teardown batch, product family, or harvested-part program

The inputs for this scenario

  • Usable parts harvested: 5,200 parts (unchanged)
  • Salvage value per usable part: 9.75 $ / part (unchanged)
  • Parts expected to pass salvage grading: 66 % (raised for this scenario; the documented default is 57)
  • Fixed teardown, cleaning, testing, or cataloging cost to subtract: 3,500 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Gross usable-part salvage value = usable parts harvested × salvage value per usable part × parts expected to pass salvage grading) to the inputs above produces each figure below.
  • At this operating point the engine returns 36,962 net part salvage value for net part salvage value, the number this scenario is built around.
  • At this operating point the engine returns 7.11 $ / piece for salvage value per harvested part.
  • At this operating point the engine returns 33,462 $ for gross usable-part salvage value.
  • At this operating point the engine returns 3,500 $ for fixed teardown, cleaning, testing, or cataloging cost to subtract.

How this compares with the baseline

  • Against the tool's baseline example, where parts expected to pass salvage grading sits at 57% and the headline result is 32,399 net part salvage value, this scenario comes in 14.08% above the baseline at 36,962 net part salvage value.
  • A figure at this level is achievable when parts expected to pass salvage grading is genuinely sustained, not just peaked for a shift. 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.

Results at a glance

  • Net part salvage value: 36,962 net part salvage value (headline result)
  • Salvage value per harvested part: 7.11 $ / piece
  • Gross usable-part salvage value: 33,462 $
  • Fixed teardown, cleaning, testing, or cataloging cost to subtract: 3,500 $

Run it with your numbers

  • Every input above is editable in the live Part Salvage Value calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.