How do you calculate packaging rework cost?

Multiply units pulled by per-device rework cost and the reworkable percentage, then add the setup charge. Here 500 units x $18.50 x 70% + $1,200 setup = $7,675 total.

Why is per-unit cost lower than the per-device rework rate?

The $15.35 per pulled unit spreads cost only across salvaged units plus setup, while the $18.50 rate applies per device. Because only 70% are reworkable, variable cost is $6,475, and setup adds $1,200.

What is a good reworkable percentage?

It varies by defect, but below ~50% rework rarely pays versus scrap once setup is included. At 70% here, rework is usually justified, but confirm against the scrap value of the failed units.

Should I include the setup charge if the line is already running?

Only include the changeover and setup charge when spinning up a dedicated rework pass. If rework runs inline with no changeover, set it to zero and the $1,200 fixed adder disappears.

When is scrap cheaper than rework?

When total rework cost per recovered unit exceeds the device's remake or replacement cost. Compare the $7,675 total against buying or rebuilding the recoverable units before deciding.

Does this cover multi-pass rework?

No. It assumes a single rework pass at one flat rate. For devices needing two attempts, run the calculator twice or raise the per-device rework cost to a blended value.

Semiconductor Advanced Packaging & Test calculator

Packaging Rework Cost Calculator

Packaging Rework Cost totals what it truly costs to recover failed advanced-packaging devices, combining per-device rework spend, the fraction that is actually salvageable, and the fixed setup charge to spin up a rework line. Back-end process engineers and cost analysts use it to decide whether to rework, scrap, or renegotiate yield with a customer. It matters because rework economics are dominated by two hidden levers: the salvage rate and the fixed changeover charge, both of which raw per-unit quotes ignore. A 70% reworkable rate quietly means you pay to handle units you can never recover.

What this calculator does

Estimate the cost of reworking failed advanced-package devices, including decap, re-attach and re-test labor plus line setup.
An OSAT or fab packaging team sizing the dollar exposure of a flip-chip or fan-out lot that failed final test before deciding to rework or scrap.
It computes total rework cost and cost per pulled unit from failed volume, per-device rework, reworkable percentage, and a fixed setup charge.

Formula used

Total rework cost = units x per-device rework x reworkable% + setup charge
Per-device read = total / units pulled for rework

Inputs explained

Failed units pulled for rework:
Rework labor and material per device:
Share of pulled units actually reworkable:
Line changeover and setup charge:

How to use the result

Use it when a lot fails at package or test and you must choose between rework, scrap, and disposition, or when quoting rework to a customer.
It applies one flat per-device rework rate and does not model multi-pass rework, escalating cost by defect type, or the risk that reworked units fail again downstream.

Current U.S. benchmarks

The producer price index for copper and brass mill shapes stands at 559.593 (BLS, May 2026), up 76.8% from a year earlier. Quotes priced off last quarter's material cost miss this move. Global copper trades at $13,484 per tonne (IMF via FRED, May 2026).
The producer price index for plastic resins and materials stands at 319.371 (BLS, May 2026), up 19.5% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The producer price index for paperboard and containers stands at 276.831 (BLS, May 2026), up 8.8% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The U.S. has 11,261 computer and electronic products establishments employing about 815,443 workers (Census County Business Patterns, 2023).

Common questions

How do you calculate packaging rework cost? Multiply units pulled by per-device rework cost and the reworkable percentage, then add the setup charge. Here 500 units x $18.50 x 70% + $1,200 setup = $7,675 total.
Why is per-unit cost lower than the per-device rework rate? The $15.35 per pulled unit spreads cost only across salvaged units plus setup, while the $18.50 rate applies per device. Because only 70% are reworkable, variable cost is $6,475, and setup adds $1,200.
What is a good reworkable percentage? It varies by defect, but below ~50% rework rarely pays versus scrap once setup is included. At 70% here, rework is usually justified, but confirm against the scrap value of the failed units.
Should I include the setup charge if the line is already running? Only include the changeover and setup charge when spinning up a dedicated rework pass. If rework runs inline with no changeover, set it to zero and the $1,200 fixed adder disappears.
When is scrap cheaper than rework? When total rework cost per recovered unit exceeds the device's remake or replacement cost. Compare the $7,675 total against buying or rebuilding the recoverable units before deciding.

Last reviewed 2026-05-12.