Calculating Scrap Rates

The Scrap Rate Calculator helps you model the financial impact of scrap using your own production and pricing figures. Instead of guessing what scrap costs you, you can enter your baseline numbers, set a target scrap ratio, and quickly see what improving scrap performance could return.

Open the Calculator from Utilities

Start by opening Utilities in the GoSmarter sidebar and selecting the Scrap Rate Calculator.

This view contains the full Input Parameters area and the calculate action. The calculator is designed to work from your actual values so the outputs reflect your real operating context.

What the Calculator Measures

The calculator uses the material you purchase, the scrap you generate, and the value of both to show the cost of current scrap and the effect of reducing it.

It also supports target-based planning. You can set a target scrap ratio and compare that target to current performance. That gives you a concrete way to estimate the return from process improvements that lower scrap.

Complete the Input Parameters

The left panel is where you enter the assumptions and baseline values for the calculation.

Use these fields:

• Target Scrap Ratio
  • The percentage of scrap you want to reach.
  • Lower values represent lower waste.
• Annual Volume (tonnes)
  • The total material volume processed each year.
• Scrap Volume (tonnes)
  • The total scrap or waste material generated each year.
• Purchase Value per tonne
  • Your raw material purchase cost per tonne.
  • Use the Currency setting in the form for the unit.
• Resale Value per tonne
  • The value recovered when scrap is sold.
  • This is usually lower than the purchase value.

As you complete the form, the Current Scrap Rate metric updates to reflect the inputs you have provided.

When your values are in place, select Calculate.

Review the Results Pane

After calculation, the Results pane appears and shows the impact of the changes defined in your Input Parameters.

At the top of the pane, you get a summary view of the projected outcome.

Below the summary, a detailed table breaks down the result values in more depth.

At the bottom of the pane, export actions let you:

• Download a PDF report
• Download a CSV file for Excel
• Generate a shareable link

These outputs make it easier to communicate the expected effect of scrap improvements with colleagues and stakeholders.

Use This as a Decision Support Tool

This calculator gives fast insight into the likely impact of planned changes to scrap performance and helps you produce a clean report for review and discussion. The guide demo also notes an important boundary: this is a calculator, not the workflow for recording scrap transactions. For scrap logging and operational tracking, use the Scrap Management guide.