Textiles & Apparel Manufacturing worked example

Soft Goods Warranty Cost at 2.16% warranty claim rate: a worked example

Suppose warranty claim rate falls to 2.16%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimates expected warranty cost for a soft-goods program from claim rate and per-claim cost.

The inputs for this scenario

  • Soft goods units shipped in the period: 40,000 units (held at the documented default)
  • Average cost per warranty claim: 22 $/unit (held at the documented default)
  • Warranty claim rate: 2.16 % (the input this scenario stresses; the baseline uses 3)
  • Warranty program administration cost: 5,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Warranty cost = units shipped x cost per claim x claim rate + program admin.
  • Total soft goods warranty cost works out to 24,008 $ at these inputs, and this is the headline figure for the scenario.
  • Soft goods warranty cost per unit works out to 0.6 $ / piece at these inputs.
  • Variable soft goods warranty cost works out to 19,008 $ at these inputs.
  • Fixed soft goods warranty cost adder works out to 5,000 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where warranty claim rate sits at 3% and the headline result is 31,400 $, this scenario comes in 23.54% below the baseline at 24,008 $.
  • It computes total warranty cost from units shipped, cost per claim, and claim rate, adds fixed admin cost, and divides by units for a per-unit figure. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total soft goods warranty cost: 24,008 $ (headline result)
  • Soft goods warranty cost per unit: 0.6 $ / piece
  • Variable soft goods warranty cost: 19,008 $
  • Fixed soft goods warranty cost adder: 5,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Soft Goods Warranty Cost calculator, set warranty claim rate to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.