Free tool

Rework Cost Calculator

Pick one recurring error. Enter four numbers. See what it's costing you every month and every year.

Your numbers

Errors per monthHow many times this error happens in a typical month

Minutes to fix each errorAverage time to find, correct and re-send one error

Loaded hourly costPay plus benefits and overhead for the person fixing it

Credits, refunds & write-offs per monthMoney given back to customers because of this error

Your rework cost

Monthly rework cost

Annual rework cost

Hours spent fixing per month: 0
Labor cost per month: $0

The formula

Monthly rework cost = (errors per month × minutes to fix ÷ 60 × loaded hourly cost) + credits, refunds and write-offs

This builds on the American Society for Quality's cost-of-quality idea: rework is a cost of poor quality. ASQ doesn't publish this exact formula. ASQ, Cost of Quality