Cost of Lost Production Calculator

Calculate the financial impact of lost production due to downtime, inefficiencies, or other disruptions in your manufacturing process.

Input Parameters

Calculation Results

Calculation Formula

Total Cost of Lost Production = Lost Units × Unit Production Cost + (Lost Units × Opportunity Cost)

Where:
- Lost Units: Number of units not produced due to disruption
- Unit Production Cost: Cost to produce one unit
- Opportunity Cost: Additional lost revenue per unit from missed sales or other opportunities

Cost of Lost Production Calculator Usage Guide

Learn how to use the Cost of Lost Production Calculator to assess financial impacts of production disruptions.

How to Use This Calculator

  1. Enter the number of units that were lost due to production disruption (e.g., machine downtime, material shortages, or workforce issues)
  2. Input the cost to produce one unit of your product
  3. If applicable, enter any opportunity cost per unit (e.g., lost sales revenue from not being able to fulfill orders)
  4. Click the "Calculate" button to see the total financial impact

Principle Behind the Calculation

The calculator uses a simple formula to determine the total cost of lost production:

Total Cost = (Lost Units × Unit Production Cost) + (Lost Units × Opportunity Cost)

This helps businesses quickly understand the financial impact of production disruptions and prioritize solutions to minimize these losses.

Example Scenario

Suppose a manufacturing company lost 50 units of product due to machine breakdown, with each unit having a production cost of $25. If these units could have been sold for $40 each (opportunity cost of $40/unit), the calculation would be:

  • Production Cost: 50 units × $25/unit = $1,250
  • Opportunity Cost: 50 units × $40/unit = $2,000
  • Total Cost of Lost Production: $1,250 + $2,000 = $3,250

Applications

This calculator can be used by:

  • Operations managers to assess downtime costs
  • Production supervisors to evaluate process inefficiencies
  • Financial analysts to calculate loss impacts
  • Business owners to make informed decisions about process improvements