Downtime economics

Lost Production Calculator

Convert downtime into output not recovered by planned catch-up capacity before assigning financial value.

Production loss inputs

Use a sustainable, not nameplate, production rate.

What this calculator does

It calculates downtime × production rate × (1 − recoverable share). The result is physical lost output rather than an assumed revenue number.

When to use it

Use it to separate immediate production impact from cost, or when surplus capacity and recovery campaigns materially reduce the consequence of an outage.

Inputs and formula

Recoverable share is the percentage of initially lost production that can realistically be made up later within the planning horizon.

Worked example and interpretation

Eight lost hours at 100 units per hour with 20% recoverable output leaves 640 unrecovered units. Apply contribution margin only after validating demand and inventory effects.

Practical notes and limitations

Rate, recovery, and demand may change during an event. Use a transparent scenario range rather than a single precision value for capital decisions.