Revenue lost per hour of downtime. The Machine Downtime Cost Calculator takes revenue lost per hour of production, idle labour cost per hour, downtime hours, repair and restart costs and returns total cost of the downtime plus cost per hour of downtime, lost revenue. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Operational metrics turn time and capacity into money. Small improvements in utilisation, cycle time or defect rate compound across every unit produced, so measure them regularly. Use the worked example below to check the maths against your own figures.
How the Machine Downtime Cost Calculator works
Downtime costs revenue, wages for people who cannot work, and the repair itself. Knowing the hourly figure makes the case for preventive maintenance and spares.
Worked example
With the example values (revenue lost per hour of production of $2,500, idle labour cost per hour of $400, downtime hours of 6 hours, repair and restart costs of $1,000), the total cost of the downtime is $18,400.00; cost per hour of downtime $3,066.67, lost revenue $15,000.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is total cost of the downtime calculated?
cost = (lost revenue per hour + idle labour per hour) × hours + repair costs.
Which figures do I need?
Revenue lost per hour of production, idle labour cost per hour, downtime hours, repair and restart costs. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
How do I use this in practice?
Measure the metric for a normal week, set a target, change one thing, and measure again. Operational gains come from many small, verified improvements.
