Quality calculator
Rework Cost Calculator
Estimate the cost of a defined rework batch. Use observed labor time, your loaded labor rate, material usage and separately recorded machine or repeat inspection charges.
What this calculator does
- Calculate rework labor and material costs without assuming that occupied capacity creates lost sales.
Formula used
- Labor hours = reworked units × person-minutes per unit ÷ 60
- Labor cost = labor hours × loaded labor rate
- Material cost = reworked units × extra material per unit
- Total rework cost = labor cost + material cost + machine charges + repeat inspection charges
- Cost per reworked unit = total rework cost ÷ reworked units
Inputs explained
- Reworked Units: Unique reworked units covered by the entered cost scope.
- Labor Time per Reworked Unit: Measured mean hands-on time including repeated rework attempts.
- Loaded Labor Rate: Documented labor rate, including only its stated overhead.
- Extra Material per Unit: Additional material issued per reworked unit.
- Separate Machine Charges: Recorded machine charges excluded from the loaded labor rate.
- Repeat Inspection Charges: Failure-related repeat inspection charges excluded from other entries.
How to use the result
- Best suited to rework order costing, repair labor planning.
- A batch average does not predict unusually difficult individual repairs. Original production cost is excluded.
Current U.S. benchmarks
- U.S. manufacturing runs at 75.7% of capacity (Federal Reserve, Aug 2026). New factory orders are up 8.5% year over year (Census).
Common questions
- Do repeated attempts increase the unit count? No. Count each physical unit once and include all attempts in its measured labor time.
- What belongs in the loaded labor rate? Use your documented labor rate and its stated overhead scope. Enter machine or inspection charges separately only when excluded from that rate.
- Is occupied rework capacity a lost sale? No. A lost sale requires evidence that rework displaced saleable output with demand; this model does not infer that loss.
- Can the batch contain no reworked units? Yes, but cost per reworked unit is undefined. Enter a positive count to complete the assessment.
Related guides
Last reviewed 2026-10-06.