How do you calculate the value of scrap metal?

Multiply the net scrap weight by the price per pound, then by the buyer's payable percentage, and add any container or sorting premium. For 20,000 lb of clean material at $0.20/lb with a 95% payable share, the value is 20,000 x 0.20 x 0.95 = $3,800.

What does payable share mean for scrap?

Payable share is the percentage of the quoted commodity price a buyer actually pays after deductions for moisture, dirt, attached non-metals, and their processing margin. Clean factory drops often settle near 90-98%, while dirty or mixed loads can drop to 60-80%.

Why is the value per pound lower than the posted price?

Because the payable share reduces it. At $0.20/lb posted and a 95% payable share, the effective value per pound is $0.19, which is the $3,800 total divided by 20,000 lb.

Does sorting scrap by alloy increase the value?

Almost always. Separating clean copper, brass, stainless, or specific aluminum grades from mixed steel raises both the price per pound and the payable share, and may earn a sorting premium. Run the numbers both ways before deciding if the labor is worth it.

Should scrap weight be gross or net?

Use net weight at the recycler's certified scale. Gross weight includes the truck or container; settlements always pay on the net metal weight, so enter the net figure to match the check.

Is scrap value the same as scrap cost savings?

No. Scrap value is the revenue recovered from selling material. Scrap cost is what you paid for the steel that became scrap. Reducing scrap rate saves more than selling it, since you only recover a fraction of the purchase price as scrap.

Metals, Steel, Aluminum & Coil Processing calculator

Scrap Metal Value Calculator

Scrap metal value is the dollar amount a recycler or mill will actually pay you for a load of turnings, drops, skeleton, or punch slugs, after the buyer's payable percentage and any container or sorting premium are applied. Plant managers, buyers, and shop owners use it to verify scrap dealer settlements, decide whether to segregate alloys, and book scrap as a real revenue line rather than disposal cost. On a stamping or coil line, scrap can be 8-15% of steel purchased, so getting paid correctly matters. This calculator turns a posted price and a settlement weight into the number you should see on the check.

What this calculator does

Estimate the recoverable value of scrap metal from scrap weight, the scrap price per pound, the payable share after deductions, and any container or sorting premium.
Use it when a service center or processor wants the credit value of edge trim, skeletons, and offcuts before booking a scrap haul.
It computes the total payable dollar value of a scrap load as weight times price times payable share, plus any container or sorting premium.

Formula used

Payable scrap value = scrap weight × scrap price × payable share
Total scrap value = payable scrap value + container or sorting premium

Inputs explained

Scrap weight:
Scrap price:
Payable share:
Container or sorting premium:

How to use the result

Use it when quoting a scrap sale, auditing a dealer's settlement ticket, or deciding whether sorting a mixed load into clean grades pays off.
Posted scrap prices move daily with commodity markets and the payable share varies by grade and contamination, so a quote is only valid for the day and grade specified.

Current U.S. benchmarks

The producer price index for steel mill products stands at 348.53 (BLS, May 2026), up 6.7% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The producer price index for aluminum mill shapes stands at 404.859 (BLS, May 2026), up 36.8% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The producer price index for copper and brass mill shapes stands at 559.593 (BLS, May 2026), up 76.8% from a year earlier. Quotes priced off last quarter's material cost miss this move. Global copper trades at $13,484 per tonne (IMF via FRED, May 2026).

Common questions

How do you calculate the value of scrap metal? Multiply the net scrap weight by the price per pound, then by the buyer's payable percentage, and add any container or sorting premium. For 20,000 lb of clean material at $0.20/lb with a 95% payable share, the value is 20,000 x 0.20 x 0.95 = $3,800.
What does payable share mean for scrap? Payable share is the percentage of the quoted commodity price a buyer actually pays after deductions for moisture, dirt, attached non-metals, and their processing margin. Clean factory drops often settle near 90-98%, while dirty or mixed loads can drop to 60-80%.
Why is the value per pound lower than the posted price? Because the payable share reduces it. At $0.20/lb posted and a 95% payable share, the effective value per pound is $0.19, which is the $3,800 total divided by 20,000 lb.
Does sorting scrap by alloy increase the value? Almost always. Separating clean copper, brass, stainless, or specific aluminum grades from mixed steel raises both the price per pound and the payable share, and may earn a sorting premium. Run the numbers both ways before deciding if the labor is worth it.
Should scrap weight be gross or net? Use net weight at the recycler's certified scale. Gross weight includes the truck or container; settlements always pay on the net metal weight, so enter the net figure to match the check.

Last reviewed 2026-05-12.