Metal Recycling, Scrap Processing & Salvage worked example

Contamination Penalty at 17% contamination level: a worked example

What does the result look like when contamination level reaches 17%? The full calculation is worked below with real intermediate numbers. A scrap trader reconciling a mill settlement uses this to verify the dockage deducted for non-conforming material in a load.

The inputs for this scenario

  • Contaminated tonnage: 40 tons (unchanged)
  • Penalty rate per ton: 55 $/ton (unchanged)
  • Contamination level: 17 % (raised for this scenario; the documented default is 15)
  • Reinspection & handling fee: 300 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Penalty = tons x penalty rate x contamination level% + handling fee) to the inputs above produces each figure below.
  • At this operating point the engine returns 674 $ for total contamination penalty cost, the number this scenario is built around.
  • At this operating point the engine returns 16.85 $ / piece for contamination penalty cost per unit.
  • At this operating point the engine returns 374 $ for variable contamination penalty cost.
  • At this operating point the engine returns 300 $ for fixed contamination penalty adder.

How this compares with the baseline

  • Against the tool's baseline example, where contamination level sits at 15% and the headline result is 630 $, this scenario comes in 6.98% above the baseline at 674 $.
  • A figure at this level is achievable when contamination level is genuinely sustained, not just peaked for a shift. It assumes a single flat penalty rate and contamination percentage; real mill schedules often tier penalties or reject outright above a threshold.

Results at a glance

  • Total contamination penalty cost: 674 $ (headline result)
  • Contamination penalty cost per unit: 16.85 $ / piece
  • Variable contamination penalty cost: 374 $
  • Fixed contamination penalty adder: 300 $

Run it with your numbers

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

Last reviewed 2026-05-12.