Production worked example
Downtime Cost with downtime of 1.75 hr: a worked example in production
Here is what the math looks like when conditions slip. We hold every other input steady and drop downtime to 1.75 hr, then walk the calculation through step by step. Quantify contribution margin and labor impact from unplanned downtime.
The inputs for this scenario
- Downtime: 1.75 hr (the input this scenario stresses; the baseline uses 3.5)
- Output rate: 115 units / hr (held at the documented default)
- Contribution per unit: 6.75 $ / unit (held at the documented default)
- Standing labor cost: 240 $ / hr (held at the documented default)
Working through the calculation
- The calculation starts from the formula this tool documents: Lost units = downtime hours × output rate.
- Downtime cost works out to 1,778 $ at these inputs, and this is the headline figure for the scenario.
- Lost units works out to 201 units at these inputs.
- Lost contribution works out to 1,358 $ at these inputs.
- Standing labor works out to 420 $ at these inputs.
How this compares with the baseline
- Against the tool's baseline example, where downtime sits at 3.5 hr and the headline result is 3,557 $, this scenario comes in 50% below the baseline at 1,778 $.
- The practical read: the gap between this scenario and the baseline is entirely attributable to downtime, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It captures direct margin and standing labor only — it ignores downstream effects like expedited freight, scrap from restart, penalty clauses and lost future orders, so treat it as a conservative floor.
Results at a glance
- Downtime cost: 1,778 $ (headline result)
- Lost units: 201 units
- Lost contribution: 1,358 $
- Standing labor: 420 $
Run it with your numbers
- To rerun this with your own numbers, open the live Downtime Cost calculator, set downtime to your actual value, and adjust the remaining inputs to match your operation.
Last reviewed 2026-05-12.