Should I add labor and overhead again?

No. Include incurred labor and allocated overhead in the booked unit cost, then enter only additional cutting and disposal expense separately.

Is scrap recovery entered per part?

No. Enter the total expected or received proceeds for the entire lot. The calculator subtracts that total once.

Does this estimate replacement cost?

No. It records the net booked loss of the scrapped lot. Cost the replacement job separately using its current material, labor and overhead.

What if recovery exceeds the recorded cost?

A credit above booked cost plus disposal produces a negative net expense. Record that net recovery with your accounting process using the same lot scope.

Welding & Fabrication calculator

Weld Scrap Cost Calculator

Calculate the booked cost lost when weldments are scrapped. Enter their accumulated unit cost, lot disposal expense, recovery credit and allowed loss.

What this calculator does

Find the net booked cost of scrapped weldments after disposal charges and salvage recovery.

Formula used

Booked weldment cost = scrapped weldments × booked cost per weldment
Net scrap cost = booked weldment cost + cutting and disposal cost − recovery credit
Net cost per weldment = net scrap cost ÷ scrapped weldments
Budget reserve = scrap loss budget − net scrap cost

Inputs explained

Weldments Scrapped: Scrap count from the approved job disposition.
Booked Cost per Weldment: Incurred material, labor and allocated burden from the job ledger.
Cutting and Disposal Cost: Additional cutting and disposal expense for the entire scrap lot.
Scrap Recovery Credit: Expected or received proceeds for this scrap lot.
Scrap Loss Budget: Allowed net booked loss for this lot.

How to use the result

Best suited to scrap disposition costing, comparing recovery offers.
Input bounds are numerical limits for this implementation, not recommended process settings. Does not include replacement production, lost sales or schedule disruption. A recovery credit above booked cost plus disposal produces a net credit.

Current U.S. benchmarks

The producer price index for steel mill products stands at 381.162 (BLS, Aug 2026), up 23.4% from a year earlier. Quotes priced off last quarter's material cost miss this move.
Industrial electricity averages 9.77 cents per kWh across the U.S. (EIA, Jul 2026), up 4.7% from a year earlier. Energy-intensive steps carry this directly into unit cost.
U.S. iron and steel import customs value ran $2.2B in Aug 2026 (Census International Trade). The U.S. ran a trade deficit of $0.6B in the category that month. This dollar total mixes price, quantity, product mix, origin, and timing; it does not measure physical import volume or prove a tariff or reshoring effect.
The U.S. has 53,790 fabricated metal products establishments employing about 1,441,471 workers (Census County Business Patterns, 2023).

Common questions

Should I add labor and overhead again? No. Include incurred labor and allocated overhead in the booked unit cost, then enter only additional cutting and disposal expense separately.
Is scrap recovery entered per part? No. Enter the total expected or received proceeds for the entire lot. The calculator subtracts that total once.
Does this estimate replacement cost? No. It records the net booked loss of the scrapped lot. Cost the replacement job separately using its current material, labor and overhead.
What if recovery exceeds the recorded cost? A credit above booked cost plus disposal produces a negative net expense. Record that net recovery with your accounting process using the same lot scope.

Last reviewed 2026-10-06.