Cost of poor quality calculator
Put a dollar figure on defects: internal rework and scrap, customer escapes, and the time spent inspecting and sorting. Change any number and the results update instantly.
Runs entirely in your browser. Nothing you type is sent or stored.
How the calculation works
Cost of poor quality (COPQ) is everything you spend because work isn't done right the first time. This calculator covers the three parts most plants can estimate quickly:
- Internal failures: defects caught before shipping, times what each costs to rework or scrap.
- External failures: defects that reach the customer, times the cost of returns, sorting, freight and credits. These are usually 10× or more the cost of an internal catch.
- Appraisal: hours spent inspecting and sorting, times your loaded labour rate.
It leaves out prevention costs and the harder-to-count losses (lost customers, overtime, expediting, management time), so the real figure is usually higher.
What to do with the number
- Find the single defect that drives most of the cost. A Pareto chart of the last 3 months is enough.
- Ask whether it can be prevented at the station, not just caught later: that's poka-yoke.
- Estimate the payback with the poka-yoke payback calculator.
Common questions
What is the cost of poor quality (COPQ)?
The total cost of not doing things right the first time: internal failures (rework, scrap), external failures (returns, warranty, credits), appraisal (inspection) and prevention.
What is a typical cost of poor quality?
It is often quoted as anywhere from 5% to 30% of sales depending on the industry and how well quality is managed. Measuring your own is far more useful than any benchmark.
How do I reduce the cost of poor quality?
Target the largest defect first and prevent it at the source with error-proofing, better standard work and process control, rather than adding more inspection.