Downtime Cost Calculator
Estimate downtime’s labour cost plus additional lost contribution, in AUD. See the hourly, weekly, average monthly and annual impact using your own process figures.
How is downtime cost calculated?
Combine the hourly cost of affected labour with additional lost contribution, then apply downtime hours and your operating weeks.
- 1. Affected labour per downtime hour
- people affected × loaded hourly cost per person
- Uses one average hourly labour rate for the people you enter.
- 2. Total cost per downtime hour
- affected labour per hour + additional lost contribution per hour
- Contribution is a process-level amount. It is not multiplied by the number of people.
- 3. Cost per working week
- downtime hours per week × total cost per downtime hour
- 4. Annual estimate
- cost per working week × working weeks per year
- The same average weekly downtime is assumed throughout the operating period.
- 5. Average calendar-month cost
- annual estimate ÷ 12
- An annualised average—not a forecast of any particular month or weekly cost multiplied by four.
- 6. Annual component breakdown
- annual labour = downtime hours/week × hourly labour × working weeks
annual contribution = downtime hours/week × hourly contribution × working weeks
Calculations use unrounded input values. Currency outputs are rounded to whole AUD, so independently rounded components can differ from the displayed total by a dollar.
What do the example inputs produce?
A process stops for 5 hours/week. Four people are affected at $55/hour each, with $200/hour of additional lost contribution. The process operates for 48 working weeks/year.
These are illustrative inputs, not an Australian industry average.
| Hourly labour allowance | 4 × $55 = $220/hour |
|---|---|
| Combined hourly cost | $220 + $200 = $420/hour |
| Weekly estimate | 5 × $420 = $2,100/working week |
| Annual estimate | $2,100 × 48 = $100,800/year |
| Monthly average | $100,800 ÷ 12 = $8,400/calendar month |
| Annual split | $52,800 labour + $48,000 contribution |
Before adding the components, confirm that the $200/hour contribution allowance excludes the same labour cost counted separately.
Assumptions & limitations
The result is only as useful as the downtime and cost basis you enter. It is a simplified allowance, not an accounting measure of all losses.
- Keep the model to one compatible process. Shared teams and simultaneous machine stops can otherwise charge the same cost more than once. Calculate dissimilar operations separately.
- Count genuinely affected time. If staff move to productive work during a stop, reduce the affected headcount or time allowance. One average is used throughout the model.
- Contribution is not turnover. Allow for the contribution genuinely lost at the constraint; do not automatically charge every machine stop as lost sales.
- Labour and contribution must not overlap. Depending on your costing method, a lost-margin figure may already account for idle labour. Reconcile that basis before adding the two; enter zero for any component you exclude.
- Recovered output changes the outcome. If orders are fulfilled later, evaluate the actual overtime, recovery cost and margin effect rather than assuming all production is permanently lost.
- No automatic extras or payback. Repair parts, scrap, restart losses, penalties, overtime, and improvement-project costs are not separate inputs. Assess them independently without duplication. There is no savings percentage or ROI calculation.
Downtime calculator FAQs
Define the inputs clearly before using the estimate to prioritise an improvement.
How does the Downtime Cost Calculator work?
It multiplies weekly downtime hours by an hourly allowance for affected labour plus lost contribution. Weekly cost is multiplied by your working weeks to give the annual estimate. The monthly figure is the annual estimate divided by 12. All monetary outputs are AUD.
What should I enter for lost contribution?
Enter the additional contribution or margin lost per downtime hour for the process you are modelling—not gross sales revenue or a per-person amount. Check the cost basis with your own management accounts. If that contribution figure already includes the same idle labour allowance, remove the overlap before adding the two.
Can I calculate labour cost only?
Yes. Leave lost contribution blank or enter 0. The estimate then includes only weekly downtime hours multiplied by affected people, the loaded hourly labour rate and working weeks. Setting affected people to 0 excludes the separate labour allowance instead.
Can I add downtime from several machines or lines?
Only if the hours and hourly cost basis are compatible. Do not add simultaneous machine stops and then charge the same shared team or lost contribution more than once. For different teams, rates or constraints, calculate each process separately and reconcile shared costs before combining estimates.
Are $55 per hour and 48 working weeks Australian benchmarks?
No. Those values, along with the other defaults, are illustrative inputs only. Replace them with your own loaded labour cost, operating calendar and measured downtime. The calculator applies no standard salary multiplier and does not validate industry benchmarks.
Does the annual estimate equal achievable savings?
No. Payroll may remain payable, production may be recovered later, and affected staff may move to other work. The model excludes repair parts, scrap, restart losses, penalties, overtime and improvement-project costs unless you account for them separately without duplication. It does not calculate ROI or promise payback.