11% of annual revenue lost to unplanned downtime, on average, across global manufacturers — Siemens/Senseye "True Cost of Downtime" 60% average OEE in manufacturing vs. 85% "world-class" benchmark — Vorne / OEE.com 98% of organizations say a single hour of downtime costs over $100K — ITIC

Incident Cost Calculator

Model a specific incident — or a typical one — against your own revenue, labor, and recovery costs. Adjust the fields on the left and watch the breakdown update instantly on the right. No wizard, no signup. Part of a 5-tool suite — see tabs above.

4 cost components Real-time results Free — no system access needed Educated estimate, not an audit
Annual revenue ÷ scheduled production hours/year is a quick way to estimate this.
Wages plus benefits, payroll taxes, and overhead — typically 1.25–1.4× base hourly wage.
Changes the secondary-cost multiplier applied to scrap/rework and penalties below. See By Incident Type →
Counted at ~50% output loss — often forgotten, rarely zero.
100%
100% for a full line-down event; lower for a partial slowdown or single-cell stoppage on a multi-line plant.
Parts, contractor callout, overtime premium.
Used to estimate your annualized exposure below. Count near-misses and small stoppages too if they share this cost profile.
// Estimated cost of this incident
$0
Conservative $0 · Aggressive $0
Total estimated cost — this incident $0

Annualized exposure

Per-incident cost × incidents/year. See the Cost Index for how this compares across incident types and company sizes.

$0
3-year exposure at current rate: $0

How We Calculate

This model uses your own inputs, not a universal industry average, to price out a specific incident. Four components anchor the math:

Production
Revenue/hr × downtime hours (plus half-weighted restart time) × % output lost
— your inputs
Labor
Headcount × loaded rate × hours down, if staff stay on the clock
— your inputs
Secondary
Scrap/rework + penalties, scaled by an incident-type multiplier
— type-specific

Repair/recovery cost is a direct passthrough of what you enter. The secondary-cost multiplier reflects that the same dollar of scrap or penalty tends to carry more downstream risk for a quality or safety event (recall, regulatory, reputational exposure) than for a straightforward equipment fix — currently 1.4× for safety incidents, 1.25× for quality defects, 1.1× for supply chain disruption, 1.05× for power outages, and 1.0× for equipment and software/OT failures. Annualized exposure is a simple linear projection (per-incident cost × incidents/year) rather than a compounding model — unlike technical debt, recurring operational incidents don't reliably compound year over year, so we don't pretend they do.

⚠ Important disclaimer

This is an educated estimate, not an audit. Figures are directional (typically ±30–40%) and derived entirely from the numbers you enter. We have no access to your production data, maintenance records, or financials — nothing here constitutes a financial, engineering, or insurance assessment.

Use this to frame an internal conversation about where downtime is actually costing you money and where a reliability investment would pay for itself — not as a precise forecast or a substitute for a formal operational assessment.

The Complete Suite

This calculator is one of five free, vendor-neutral tools for quantifying and acting on operational downtime.

Overview
Operational Incident & Outage Cost

The hub page — headline benchmarks, cost components, and links into the full suite.

Open Overview →
Data
Cost Index

Benchmark tables by incident type, duration, and company size for SMB manufacturing.

View the Index →
Reference
By Incident Type

Deep dive on each incident category — cost drivers, typical duration, and mitigations.

Browse Types →
Reference
Glossary

MTTR, MTBF, OEE, RTO/RPO, and the rest of the operational-reliability vocabulary, plant-floor edition.

Read the Glossary →

Frequently Asked Questions

How do I estimate revenue per hour of production?

Divide annual revenue by your actual scheduled production hours per year (not calendar hours) — e.g., two shifts × 5 days × 50 weeks ≈ 4,000 hours. A $20M/yr plant on that schedule runs at roughly $5,000/hr. If output varies a lot by product line, use the line's own revenue and hours instead of the whole plant's.

Why does ramp-up time matter?

Most lines don't return to full output the instant power or the machine comes back — there's a warm-up, requalification, or re-sequencing period. Ignoring it is one of the most common ways teams understate what an incident actually cost.

What if staff are reassigned instead of idle?

Select "No — sent home / reassigned" and the labor-cost component drops to zero, since that cost isn't actually incremental. If they're doing lower-value work instead of being fully idle, you could still estimate a partial cost manually and add it to the repair/recovery field.

How is the incident-type multiplier justified?

It only applies to the scrap/rework and penalty inputs, not your whole total — the idea is that the same dollar of scrap carries more downstream tail risk (recall, regulatory action, reputational damage) for a quality or safety event than for a routine equipment fix. It's a modeling judgment call, not a cited statistic — adjust your penalty/scrap inputs directly if you think it overstates or understates your situation.

Can I use this for a single workstation or cell instead of a whole line?

Yes — just scale your revenue-per-hour and headcount inputs down to that workstation or cell's actual output and staffing, rather than the whole plant's.

// Want a real number, not an estimate?

Get a formal operational resilience assessment.

A structured engagement reviews your actual production data, maintenance records, and incident logs to replace this estimate with hard numbers and a prioritized reliability roadmap.