Printing, Labels & Industrial Converting worked example

Label Scrap Cost at 68% non-recoverable cost share: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop non-recoverable cost share to 68%, then walk the calculation through step by step. Estimate the cost of scrapped labels from reject count, embedded label cost, and the share that cannot be recovered.

The inputs for this scenario

  • Labels rejected or scrapped: 4,500 labels (held at the documented default)
  • Fully loaded cost per label: 0.06 $ / label (held at the documented default)
  • Non-recoverable cost share: 68 % (the input this scenario stresses; the baseline uses 95)
  • Disposal and job-restart cost: 120 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Label scrap cost = scrapped labels × fully loaded label cost × non-recoverable share + disposal and restart cost.
  • Total label scrap cost works out to 304 $ at these inputs, and this is the headline figure for the scenario.
  • Label scrap cost per unit works out to 0.07 $ / piece at these inputs.
  • Variable label scrap cost works out to 184 $ at these inputs.
  • Fixed label scrap cost adder works out to 120 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where non-recoverable cost share sits at 95% and the headline result is 377 $, this scenario comes in 19.36% below the baseline at 304 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to non-recoverable cost share, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It assumes one blended per-label cost; if scrap spans jobs with very different material or print complexity, run them separately for accuracy.

Results at a glance

  • Total label scrap cost: 304 $ (headline result)
  • Label scrap cost per unit: 0.07 $ / piece
  • Variable label scrap cost: 184 $
  • Fixed label scrap cost adder: 120 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Label Scrap Cost calculator, set non-recoverable cost share to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.