Contract Manufacturing, Job Shop Quoting & Make-to-Order calculator
Backlog Value Calculator
Backlog value is what the open order book is worth once you separate the share you can ship in the period from the work that is stalled. Enter the open orders, average order value, shippable share and any fixed adjustment.
What this calculator does
- The value of open orders on the books, split into the shippable share and a fixed adjustment, with a per-order read.
Formula used
- Shippable backlog value = open orders × average revenue per open order × shippable share
- Total backlog value = shippable backlog value + fixed backlog adjustment
- Backlog value per open order = total backlog value ÷ open orders
Inputs explained
- Open Orders in the Backlog: Order lines still open on the shop floor and in planning.
- Average Revenue per Open Order: Average order value across the open order book, from your system.
- Shippable Backlog Share: Share of open value with material released and a firm ship date.
- Fixed Backlog Adjustment: Known additions or write-offs that the per-order averages do not carry.
How to use the result
- Best suited to preparing a monthly backlog review, tracking the shippable share of booked work, reporting order book value to the bank.
- Averages hide mix: a backlog tilted to one large program or one slow customer needs segmenting. Shippable work still needs material, capacity and a ship date before it can be invoiced.
Current U.S. benchmarks
- The U.S. prime lending rate is 7.00% (Federal Reserve via FRED, 2026-10-02). Payback and financing math should start from today's rate, not a remembered one.
Common questions
- Is backlog value the same as revenue? No. Backlog is work won but not yet shipped. Revenue lands when you invoice, and open orders can still be cancelled, renegotiated or resequenced before they ship.
- What belongs in the fixed adjustment? Known amounts the per-order average misses, such as a signed change order, a cancellation credit, or freight and tooling billed once. Keep the list short and dated.
- How do I estimate the shippable share? Use the share of open value with material released and a firm ship date in the period. A schedule review gives a better number than the size of the backlog alone.
- Why does the per-order figure include the fixed adjustment? Because it divides the total backlog value, fixed adjustment included. For the shippable figure per order, divide the shippable backlog value by the open order count.
Related guides
Last reviewed 2026-10-01.