Scrap Metal Profit Calculator

Calculate scrap trading profit from purchase cost, transport, processing, recovery loss, selling price and additional expenses. USD is the default currency.

Scrap purchase

Operating costs

Recovery and selling price

Example: 95% recovery means 95% of purchased scrap becomes saleable material.

Profit breakdown

Purchase cost
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Total operating costs
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Total cost
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Saleable weight
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Sales revenue
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Net profit
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Profit margin
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ROI
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Unit economics

Break-even selling price

The break-even price is the minimum selling price per kg of recovered material required to cover all entered costs.

How the calculation works

Purchase cost = purchased weight × purchase price/kg Saleable weight = purchased weight × recovery % Sales revenue = saleable weight × selling price/kg Total cost = purchase cost + transport + processing + labor + other costs + selling costs Profit = sales revenue − total cost Profit margin = profit ÷ sales revenue × 100 ROI = profit ÷ total cost × 100
Recovery percentage is important in scrap trading because the purchased weight may include contamination, moisture, non-metal material, oxidation or processing losses.

Example

Purchase
1,000 kg at USD 0.60/kg = USD 600 purchase cost.
Recovery
95% recovery produces 950 kg of saleable material.
Sale
950 kg at USD 1.00/kg = USD 950 revenue.
Additional costs
Transport, processing, labor, other costs and selling costs are deducted before calculating profit.

What affects scrap metal profit?

This calculator estimates trading profit from the numbers you enter. Actual profit can differ because of weighing differences, buyer deductions, changing market prices, financing costs and other business expenses.

Frequently Asked Questions

How is scrap metal profit calculated? Profit equals final sales revenue minus the purchase cost and all other entered costs.

Why is recovery percentage important? Not all purchased scrap necessarily becomes saleable material. Recovery accounts for contamination, sorting losses and processing losses.

Can transport costs be included? Yes. Enter transport or freight as a separate operating cost.

Can processing costs be included? Yes. Processing, sorting, cutting, shredding or preparation costs can be entered separately.

What is the break-even selling price? It is the selling price per kg of recovered material at which total revenue equals total costs and profit is zero.

What is profit margin? Profit margin is net profit divided by sales revenue, expressed as a percentage.

What is ROI? ROI is profit divided by total entered cost, expressed as a percentage.

What is the default currency? USD is the default currency. Other currencies are available for international calculations.