Packaging & Logistics worked example

Damage Rate Cost with damaged units in the period of 30 units: a worked example

Suppose damaged units in the period falls to 30 units. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate total cost of damage from damaged units, cost per damaged unit, and returns and claims handling costs.

The inputs for this scenario

  • Damaged units in the period: 30 units (the input this scenario stresses; the baseline uses 60)
  • Replacement cost per damaged unit: 25 $ / unit (held at the documented default)
  • Returns freight cost: 150 $ (held at the documented default)
  • Claims and admin handling cost: 100 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total damage cost = damaged units × cost per damaged unit + returns freight cost + claims and admin cost.
  • Total damage cost works out to 1,000 $ at these inputs, and this is the headline figure for the scenario.
  • Cost per damaged unit works out to 33.33 $ / unit at these inputs.
  • Replacement cost works out to 750 $ at these inputs.
  • Returns and claims handling cost works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where damaged units in the period sits at 60 units and the headline result is 1,750 $, this scenario comes in 42.86% below the baseline at 1,000 $.
  • It sums replacement value, return freight, and claims and admin cost into a total damage cost, then divides by damaged units to give a fully loaded cost per damaged unit. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total damage cost: 1,000 $ (headline result)
  • Cost per damaged unit: 33.33 $ / unit
  • Replacement cost: 750 $
  • Returns and claims handling cost: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Damage Rate Cost calculator, set damaged units in the period to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.