Find the minimum selling price needed to break even after scrap purchase, transport, processing, recovery loss and other costs. USD is the default currency.
Scrap purchase
Additional costs
Recovery and break-even basis
Recovery represents the percentage of purchased scrap that becomes saleable material.
Break-even results
Purchase cost
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Additional costs
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Total cost
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Saleable weight
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Break-even / saleable kg
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Break-even / purchased kg
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Break-even / tonne
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Break-even / pound
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Actual selling price check
Reverse recovery calculation
If your selling price is fixed, calculate the minimum recovery percentage required to avoid a loss.
Break-even formula
Total cost = purchase cost + transport + processing + labor + other costs + selling costs
Saleable weight = purchased weight × recovery ÷ 100
Break-even selling price/kg = total cost ÷ saleable weight
Minimum recovery % = total cost ÷ (purchased weight × selling price/kg) × 100
The break-even selling price rises when recovery falls because fewer kilograms of saleable material are available to recover the transaction's total cost.
Example
Purchase
1,000 kg at USD 0.60/kg = USD 600.
Additional costs
If transport, processing, labor and other costs total USD 200, total cost becomes USD 800.
Recovery
At 95% recovery, 950 kg becomes saleable.
Break-even
USD 800 ÷ 950 kg = approximately USD 0.8421 per saleable kg.
What can change your break-even point?
Scrap purchase price
Actual recovered metal percentage
Transport distance and freight rates
Sorting and processing costs
Labor and equipment expenses
Buyer commissions or deductions
Final selling price
Contamination and non-metal content
Moisture or weighing adjustments
Taxes, duties and other business expenses
This calculator is an estimate based on your inputs. Actual break-even performance can differ because of supplier and buyer weighing, contamination deductions, changing market prices and unplanned operating expenses.
Frequently Asked Questions
What is scrap metal break-even price?It is the minimum selling price per kilogram of recovered material required for revenue to equal all entered costs.
Does recovery loss affect break-even?Yes. Lower recovery means less saleable material, which increases the required selling price per saleable kilogram.
Can transport be included?Yes. Transport or freight is included as a separate cost.
Can processing and labor be included?Yes. Processing, labor and other operating costs can all be entered.
Can I calculate the required recovery percentage?Yes. Enter an expected selling price and the calculator estimates the minimum recovery required to break even.
What is the break-even price per tonne?It is the break-even price per saleable kilogram multiplied by 1,000.
What currency does the calculator use?USD is the default currency, with other currencies available for international calculations.