With the illustrative inputs below, the result is 680 per month.
Try this with your own numbersFormula and worked example
Rework cost = sales × rework rate × (hours × labour cost + extra materials)
| Input | Example |
|---|---|
| Completed monthly sales | 80 |
| Sales needing rework | 5 % |
| Extra hours per rework | 3 |
| Burdened hourly cost | 40 |
| Extra materials per rework | 50 |
| Calculated result | 680 per month |
Choose reliable inputs
Plan materials, travel and crew time before committing to a price. For this appliance repair calculation, use a completed job sheet, supplier quotes and a crew schedule and a consistent definition of one repair visit.
- Diagnostics: include the portion belonging to this repair visit or reporting period, and record where the value came from.
- Replacement parts: include the portion belonging to this repair visit or reporting period, and record where the value came from.
- Repeat trips: include the portion belonging to this repair visit or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
Why does rework matter beyond the replacement material?
Extra labour consumes both cash and capacity that could otherwise deliver new work.
Excludes customer churn and reputational effects; rates must be measured or labelled scenarios.
What if this input changes?
If completed monthly sales rises by 10%, this example changes by 68 per month. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.