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Downtime Cost Calculator

Transparent estimate of lost production and direct downtime costs.

Inputs

Illustrative example values — replace them with data from your analysis period.

Results

Estimated lost production240 units
Estimated production-value loss1,920 MAD
Labor cost during downtime72 MAD
Energy / utility cost30 MAD
Scrap, restart and other fixed losses0 MAD
Total estimated downtime cost2,022 MAD
Estimated cost per minute16.85 MAD/min
Estimated cost per hour1,011 MAD/h

Visual comparison

Production value1,920
Labor72
Utilities30
Fixed losses0

Formula and scope

Lost units = downtime hours × production rate. Lost contribution = lost units × contribution margin per unit. Direct labor, utilities and fixed losses are then added.

Results use only visible inputs. OEE thresholds are configurable references, never universal standards. Downtime costs are scenario estimates, not accounting measurements; avoid adding a cost already included in the unit value or contribution margin.

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Engineering reference

Manufacturing Downtime Cost Calculator

Estimate lost production value and visible direct costs during a defined downtime event.

Calculation method

Lost units equal downtime hours times production rate. The selected revenue, contribution-margin or custom hourly basis is combined with visible labor, utility and fixed costs.

Formulas used

  • Lost units = downtime hours × production rate
  • Total = production-value loss + labor + utilities + entered fixed losses

Worked example

Example: 2 h at 120 units/h represents 240 potentially lost units before applying the selected financial basis.

How to interpret the result

This is a scenario estimate, not an accounting measurement. Avoid adding costs already embedded in unit value or margin.

Common mistakes

  • Using revenue and calling it profit.
  • Double-counting labor or utilities.
  • Ignoring restart scrap.

Scope and limitations

  • Consequential losses, contractual penalties and recovery production require separate evidence.

Frequently asked questions

Should I use revenue or contribution margin?

Contribution margin usually better represents lost economic contribution; the tool labels each basis explicitly.

Are idle labor costs always additional?

No. Include it only when it matches the decision scope and is not already counted.

Can I compare downtime events?

Yes when production rates, valuation basis and included cost categories are consistent.