Metal Recycling, Scrap Processing & Salvage worked example

Contamination Penalty at 11% contamination level: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop contamination level to 11%, then walk the calculation through step by step. Estimate the contamination penalty applied to a scrap load from tonnage, dockage rate, contamination level, and fixed handling fees.

The inputs for this scenario

  • Contaminated tonnage: 40 tons (held at the documented default)
  • Penalty rate per ton: 55 $/ton (held at the documented default)
  • Contamination level: 11 % (the input this scenario stresses; the baseline uses 15)
  • Reinspection & handling fee: 300 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Penalty = tons x penalty rate x contamination level% + handling fee.
  • Total contamination penalty cost works out to 542 $ at these inputs, and this is the headline figure for the scenario.
  • Contamination penalty cost per unit works out to 13.55 $ / piece at these inputs.
  • Variable contamination penalty cost works out to 242 $ at these inputs.
  • Fixed contamination penalty adder works out to 300 $ at these inputs.

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 13.97% below the baseline at 542 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to contamination level, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. 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: 542 $ (headline result)
  • Contamination penalty cost per unit: 13.55 $ / piece
  • Variable contamination penalty cost: 242 $
  • Fixed contamination penalty adder: 300 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Contamination Penalty calculator, set contamination level to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.