Circular Economy, Recycling & Remanufacturing worked example

Remanufacturing Margin at 99% units expected to pass and sell as remanufactured product: a worked example

What does the result look like when units expected to pass and sell as remanufactured product reaches 99%? The full calculation is worked below with real intermediate numbers. a team needs to quote remanufactured assemblies or decide whether a return stream has enough margin for a remanufactured SKU, customer program, or monthly plan

The inputs for this scenario

  • Remanufactured units planned for sale: 850 units (unchanged)
  • Gross margin per remanufactured unit: 62 $ / unit (unchanged)
  • Units expected to pass and sell as remanufactured product: 99 % (raised for this scenario; the documented default is 88)
  • Fixed reman program cost to subtract: 6,800 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Gross remanufactured-unit margin = remanufactured units planned for sale × gross margin per remanufactured unit × units expected to pass and sell as remanufactured product) to the inputs above produces each figure below.
  • At this operating point the engine returns 58,973 expected remanufacturing margin for expected remanufacturing margin, the number this scenario is built around.
  • At this operating point the engine returns 69.38 $ / piece for margin per planned reman unit.
  • At this operating point the engine returns 52,173 $ for gross remanufactured-unit margin.
  • At this operating point the engine returns 6,800 $ for fixed reman program cost to subtract.

How this compares with the baseline

  • Against the tool's baseline example, where units expected to pass and sell as remanufactured product sits at 88% and the headline result is 53,176 expected remanufacturing margin, this scenario comes in 10.9% above the baseline at 58,973 expected remanufacturing margin.
  • A figure at this level is achievable when units expected to pass and sell as remanufactured product is genuinely sustained, not just peaked for a shift. It treats per-unit margin and sell-through as single averages; price erosion late in a product's life or warranty returns can pull realized margin below the projection.

Results at a glance

  • Expected remanufacturing margin: 58,973 expected remanufacturing margin (headline result)
  • Margin per planned reman unit: 69.38 $ / piece
  • Gross remanufactured-unit margin: 52,173 $
  • Fixed reman program cost to subtract: 6,800 $

Run it with your numbers

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

Last reviewed 2026-05-12.