Downtime cost calculator
Work out what one hour of a stopped machine costs using your own figures. Check the assumptions before you act on the result.
Your figures
Result
- Downtime cost
- ₹50,200.00
How it is worked out
cost = hours down x (machine hour rate + idle labour cost per hour) + lost contribution if orders were missed (input)
downtime_cost = hours_down*(machine_hour_rate+idle_labour_per_hour)+lost_contribution
What it works out
The downtime cost calculator turns records from the business into a figure for this decision: what one hour of a stopped machine costs. Use it when the responsible maintenance in-charge needs a consistent answer for this specific task. The answer uses only the values entered. Record the measurement period beside it.
What you need
| Input | Unit | Where to find it |
|---|---|---|
| Hours down (example: 12) | units | Enter hours down using the current job, register or approved business plan. |
| Machine hour rate (example: 850 ₹/hour) | ₹/hour | Read machine hour rate from the job card, shift report, machine log or maintenance register. |
| Idle labour per hour (example: 500 ₹/hour) | ₹/hour | Enter idle labour per hour using the current job, register or approved business plan. |
| Lost contribution (example: 34,000) | units | Enter lost contribution using the current job, register or approved business plan. |
Use the same item, period and measurement unit for related inputs. If a figure comes from an estimate rather than an actual record, mark it as estimated. Keep your original figures beside the result.
The formula
In plain words, calculate downtime cost using the measured inputs below. The expressions are shown without hidden rounding so they can be checked by hand.
- downtime cost:
downtime_cost = hours_down*(machine_hour_rate+idle_labour_per_hour)+lost_contribution.
Formula basis from the supplied taxonomy: cost = hours down x (machine hour rate + idle labour cost per hour) + lost contribution if orders were missed (input). The calculation assumes the named inputs describe the same job and accounting period. Keep quantities, rates and measured units consistent.
A worked example
Illustrative example: a pump assembly workshop uses the figures in the table above. These are example inputs, not industry averages. For this example, the main figures are hours down: 12, machine hour rate: 850 ₹/hour, idle labour per hour: 500 ₹/hour, lost contribution: 34,000.
- Downtime cost:
hours_down*(machine_hour_rate+idle_labour_per_hour)+lost_contribution. With the example figures,12.0 * (850.0 + 500.0) + 34000.0gives ₹50,200.
How to act: Use the result to check the machine or service log. Write down the input date and the assumption that could move most.
How to read the result
Example bands, change them for your business:
- Comfortable: Your result meets the target for this item or reporting period. Keep the calculation with its source records and check the machine or service log.
- Watch: The result is close to your action limit, or it changed since the previous calculation. Recheck hours down and machine hour rate using the original records.
- Act: The result breaks a limit already agreed by the manager or owner. Record the difference, name a responsible person, and agree a correction date. For an operational starting point, read [Machines break down](/problems/machines-break-down) and [Breakdown to recovery](/processes/breakdown-to-recovery). Do not use these example bands as published industry benchmarks.
Copy it into a spreadsheet
Create a sheet with column A for the label and column B for the number or formula. The expressions work in Excel or Google Sheets. Keep input cells editable and result cells protected from typing.
| Cell | Label | Value or formula |
|---|---|---|
| B2 | hours down | 12.000000 |
| B3 | machine hour rate | 850.000000 |
| B4 | idle labour per hour | 500.000000 |
| B5 | lost contribution | 34000.000000 |
| B7 | downtime cost | =((B2*(B3+B4))+B5) |
For any formula containing a divisor, enter a value above zero. For any monetary output, format the cell in Indian rupees. Do not replace the cells with rounded figures until the final display.
What this calculator leaves out
- Estimated electricity loads, failure causes and downtime losses need a site check.
- Do not add lost contribution when the order was simply made later without a loss. This can otherwise count the same effect twice.
- The formula does not check whether the records are complete. Read the machine hour meter, repair log and utility bills from the same period. Split planned stops from faults.
Common mistakes
- Mixing periods. Using hours down from one month with machine hour rate from another produces a number that looks precise but is hard to act on.
- Trusting old figures. Recheck the relevant source record before reusing last month's saved inputs. Check the largest cost or longest breakdown first; an average can hide one critical failure.
- Treating an estimate as approval. Record which assumptions were entered by hand. Get the relevant owner, accountant or technician to check unusual values.
A number like this helps only if someone works it out again when things change.
Questions people ask
Where do I find the numbers for downtime cost calculator?
Enter hours down using the current job, register or approved business plan. Read machine hour rate from the job card, shift report, machine log or maintenance register. Keep all inputs from the same period.
Can I use this number to approve a purchase or payment?
Use it as a first check. Use the result to check the machine or service log. Write down the input date and the assumption that could move most. If the result affects tax, legal duties, workplace safety or a major investment, obtain the appropriate review.
When should I calculate it again?
Recalculate when a meaningful input changes, and at the next regular review of the relevant register. Save the date and the input values so changes can be explained.