What is the difference between scrap and waste?

Scrap keeps material value and can be reworked, sold or recycled; waste is discarded. This model prices the value lost plus the handling and disposal dollars a scrap event triggers.

Should a resale or recovery credit reduce the cost?

Yes. Net any rebate, resale or recovery credit against the material value before entry, so the per-pound figure reflects the true loss.

Why does the per-pound cost fall on a larger scrap event?

The rework and disposal adders are dollars per event, so they spread over more pounds. At the defaults, 650 lb costs $3.5077 per pound while 1,600 lb costs $2.8500.

Which costs belong in the two adder fields?

Rework and handling covers labor, re-inspection and repackaging. Disposal and overhead covers waste charges, drums and the paperwork cost of the event.

Process Manufacturing calculator

Scrap Cost Calculator

Put dollars on scrapped material, in total and per pound, and see whether the event stays under your target. Enter the scrapped weight, material value and the two adder groups.

What this calculator does

Total and per-pound scrap cost from lost material value and fixed handling adders, against a target.

Formula used

Material value lost = scrapped weight × material value per pound
Total scrap cost = material value lost + rework and handling + disposal and overhead
Scrap cost per pound = total scrap cost ÷ scrapped weight
Cost versus target = scrap cost per pound ÷ target cost per pound × 100

Inputs explained

Scrapped Material: Pounds scrapped in this event, from the batch record.
Material Value: Purchase cost per pound of the lost material.
Rework and Handling: Labor, re-inspection and repackaging for the event.
Disposal and Overhead: Waste charges, drums and paperwork for the event.
Target Scrap Cost: Scrap cost per pound the event must beat.

How to use the result

Best suited to costing a scrap event before review, comparing rework and disposal options, setting a scrap cost cap with a supplier.
Scrap cost per pound and the target share are blank when the weight or target is zero. Rework that returns material to sale reduces the loss; enter only the unrecovered dollars.

Current U.S. benchmarks

The producer price index for industrial chemicals stands at 336.006 (BLS, Aug 2026), up 13.3% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The U.S. has 14,543 chemical manufacturing establishments employing about 911,245 workers (Census County Business Patterns, 2023).

Common questions

What is the difference between scrap and waste? Scrap keeps material value and can be reworked, sold or recycled; waste is discarded. This model prices the value lost plus the handling and disposal dollars a scrap event triggers.
Should a resale or recovery credit reduce the cost? Yes. Net any rebate, resale or recovery credit against the material value before entry, so the per-pound figure reflects the true loss.
Why does the per-pound cost fall on a larger scrap event? The rework and disposal adders are dollars per event, so they spread over more pounds. At the defaults, 650 lb costs $3.5077 per pound while 1,600 lb costs $2.8500.
Which costs belong in the two adder fields? Rework and handling covers labor, re-inspection and repackaging. Disposal and overhead covers waste charges, drums and the paperwork cost of the event.

Last reviewed 2026-10-01.