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Machine Downtime Cost Calculator

Add up lost contribution, idle labour, repair, overtime catch-up and restart scrap for a single downtime event, then see what it costs over a year.

The breakdown

Lost output

People

Direct costs

Cost of this event

₹56,000

8 hours down, 3 operators idle

Cost per year

₹13,44,000

2 events a month, 12 months

Lost contribution₹21,600
Idle labour₹2,160
Repair and spares₹25,000
Catch-up overtime₹3,240
Restart scrap₹4,000
Per event₹56,000

Customer penalties and lost repeat orders are not included. For most SME units they are the largest line of all.

How it's calculated

  1. 01Lost contribution = downtime hours × units per hour × contribution per unit.
  2. 02Idle labour = downtime hours × operators waiting × hourly wage.
  3. 03Catch-up overtime = overtime hours × operators × hourly wage × overtime multiplier.
  4. 04Event cost = lost contribution + idle labour + repair + overtime + restart scrap.
  5. 05Annual cost = event cost × events per month × 12.

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