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?
Purchase price per kg
Actual recovered metal percentage
Transport distance and freight cost
Sorting and processing expenses
Labor and equipment costs
Final selling price
Buyer deductions and commissions
Contamination and non-metal content
Market price changes between purchase and sale
Taxes, duties and other business expenses
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.