Machine Downtime Cost Calculator - the hidden tax on your operation.

Downtime cost per hour = lost units per hour x contribution margin per unit + idle labor + restart cost. One hour down is rarely just an hour. Enter your line numbers to get the true hourly and annual cost.

Downtime cost rarely appears as a line item - it shows up as overtime, expedite shipping, and missed deliveries. This calculator quantifies the full cost and shows what a PM program, SMED, or a CMMS would save.

Your equipment

Number of production machines / lines

Avg unplanned downtime per machine / month (hrs)

Avg planned downtime per machine / month (hrs)

Avg changeover time per machine / month (hrs)

Revenue per production hour (whole operation, $)

Recovery costs

OT hours / month driven by downtime recovery

OT premium per hour ($)

Expedite shipping / month ($)

Late deliveries / quarter

Avg penalty per late delivery ($)

When downtime is a hidden tax, not a managed cost

SimpleGrid tracks every minute - planned, unplanned, changeover - and ties it to revenue impact.

The 80:20 planned-to-unplanned ratio is the top-decile benchmark (SMRP). Most plants run 30:70 the wrong way. A CMMS layered on event-sourced data flips this in 6-12 months.

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What downtime really costs

Most mid-market manufacturers don't quantify downtime because it shows up as overtime, expedite shipping, and missed deliveries rather than a single line item. ARC Advisory Group estimates $50B in annual downtime cost across US industrial manufacturers. The average plant loses 800 hours per year to unplanned downtime (Deloitte 2022).

The 80:20 rule for maintenance

Top-decile maintenance organizations target 80% planned downtime, 20% unplanned (SMRP standard). Most mid-market plants run 30:70 the wrong way. Emergency repairs cost 3-4x more than planned maintenance. The shift from reactive to planned typically pays back in 6-12 months.

FAQ

What's a CMMS and do I need one?

Computerized Maintenance Management System - basically work-order software for equipment. Tracks PM schedules, parts inventory, downtime causes, technician time. If you have more than 5 critical machines and no CMMS, you're losing money you can't see. Standalone CMMS is $30-150/month; integrated ERP includes it.

What is SMED?

Single-Minute Exchange of Dies - a structured methodology to reduce changeover time. Originally developed at Toyota, typically reduces changeover by 40-60% within 90 days. The most cost-effective ops improvement available.