Personal Care, Cosmetics & Household Products worked example

Packaging Scrap Cost at 3.45% packaging scrap rate: a worked example in personal care, cosmetics & household products

Push packaging scrap rate up to 3.45% and the picture changes. This example computes every intermediate figure at that operating point. Use it to size packaging scrap losses on a filling and packing run and justify a scrap reduction project.

The inputs for this scenario

  • Units produced in the run: 10,000 units (unchanged)
  • Packaging cost per unit: 0.85 $ / unit (unchanged)
  • Packaging scrap rate: 3.45 % (raised for this scenario; the documented default is 3)
  • Fixed disposal and handling adder: 120 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Scrapped packaging cost = units produced in the run × packaging cost per unit × packaging scrap rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 413 $ for total packaging scrap cost, the number this scenario is built around.
  • At this operating point the engine returns 0.04 $ / piece for scrap cost per unit.
  • At this operating point the engine returns 293 $ for scrapped packaging cost.
  • At this operating point the engine returns 120 $ for fixed disposal and handling adder.

How this compares with the baseline

  • Against the tool's baseline example, where packaging scrap rate sits at 3% and the headline result is 375 $, this scenario comes in 10.2% above the baseline at 413 $.
  • It computes the total dollar cost of scrapped primary and secondary packaging on a run, including a fixed disposal and handling charge. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total packaging scrap cost: 413 $ (headline result)
  • Scrap cost per unit: 0.04 $ / piece
  • Scrapped packaging cost: 293 $
  • Fixed disposal and handling adder: 120 $

Run it with your numbers

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

Last reviewed 2026-05-12.