# Sheet Metal Scrap Credit and Net Material Cost Calculator

> Source: https://netray.co/tools/sheet-metal-scrap-credit-and-net-material-cost-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Compute the material cost of a nested sheet, subtract the scrap value of the skeleton, and get a net material cost per part.

## Category

cost-finance

## Industry

Sheet Metal Fabrication

## Audience

- Estimator
- Purchasing
- Cost accountant

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Sheet length

**Key:** sl

**Type:** number

**Default:** 3000

**Min:** 1

**Step:** 10

**Unit:** mm

#### Sheet width

**Key:** sw

**Type:** number

**Default:** 1500

**Min:** 1

**Step:** 10

**Unit:** mm

#### Thickness

**Key:** t

**Type:** number

**Default:** 2

**Min:** 0.1

**Step:** 0.1

**Unit:** mm

#### Material

**Key:** rho

**Type:** select

**Default:** 7.85

**Options:**

##### Carbon steel (7.85 g/cm3)

**Value:** 7.85

##### Stainless 304 (8.0 g/cm3)

**Value:** 8

##### Aluminium (2.70 g/cm3)

**Value:** 2.7

##### Copper (8.96 g/cm3)

**Value:** 8.96

**Help:** Density used for weight.

#### Net blank area per part

**Key:** area

**Type:** number

**Default:** 12500

**Min:** 1

**Step:** 100

**Unit:** mm2

**Help:** Area of the part after holes and cutouts are removed.

#### Parts per sheet

**Key:** n

**Type:** number

**Default:** 180

**Min:** 1

**Step:** 1

#### Sheet purchase price

**Key:** price

**Type:** number

**Default:** 1.1

**Min:** 0

**Step:** 0.05

**Unit:** $/kg

#### Scrap selling price

**Key:** scrap

**Type:** number

**Default:** 0.25

**Min:** 0

**Step:** 0.01

**Unit:** $/kg

**Help:** What the scrap dealer pays for the skeleton.

**Outputs:**

#### Sheet weight

**Key:** sheet_kg

**Expr:** sl * sw * t * rho / 1000000

**Format:** decimal

**Description:** Kilograms.

#### Net weight per part

**Key:** part_kg

**Expr:** area * t * rho / 1000000

**Format:** decimal

**Description:** Kilograms, net of holes.

#### Material utilization

**Key:** util

**Expr:** n * part_kg / sheet_kg * 100

**Format:** percent

**Primary:** true

#### Skeleton and offcut weight

**Key:** skeleton

**Expr:** max(sheet_kg - n * part_kg, 0)

**Format:** decimal

**Description:** Kilograms of scrap per sheet.

#### Sheet cost

**Key:** sheet_cost

**Expr:** sheet_kg * price

**Format:** currency

#### Scrap credit per sheet

**Key:** credit

**Expr:** skeleton * scrap

**Format:** currency

#### Gross material cost per part

**Key:** gross

**Expr:** sheet_cost / n

**Format:** currency

#### Net material cost per part

**Key:** net

**Expr:** (sheet_cost - credit) / n

**Format:** currency

**Primary:** true

**Chart:**

#### Material cost per part vs parts per sheet

**Type:** line

**X:** n

**From:** 100

**To:** 300

**Steps:** 20

**Series:**

- gross
- net

**Disclaimer:** Uses nominal density and thickness. Real sheet weight varies with thickness tolerance and coating. Parts per sheet comes from your nest, so check that it is achievable.

## Content

**Intro:** Material is usually the largest line in a sheet metal quote, and the skeleton left after cutting is not worthless. This calculator turns sheet size, thickness and nest count into utilization, scrap credit and a net material cost per part.

**Sections:**

#### How to use it

**Body:** Enter the sheet size, thickness and material, then the net blank area of one part and how many parts your nest places on a sheet. Add the purchase price per kilogram and what your scrap dealer pays. The calculator returns sheet weight, net part weight, utilization, scrap weight and both gross and net material cost per part. Use net blank area, which excludes holes and cutouts, to match the weight of the finished part. Test different nests to see how a single extra part per sheet changes cost.

#### The method

**Body:** Weight in kilograms is length x width x thickness in millimetres, times density in g/cm3, divided by 1,000,000. Utilization is parts per sheet x part weight divided by sheet weight. The skeleton is the difference between sheet and total part weight. Net cost is sheet cost minus skeleton weight x scrap price, divided by parts per sheet. Whether to quote on gross or net cost is a commercial choice. Some shops credit scrap to the customer on dedicated material, while others retain it to cover handling.

**Bullets:**

- Weight = L x W x t x density / 1,000,000
- Utilization = parts x part weight / sheet weight
- Net per part = (sheet cost - scrap credit) / parts

#### Reading the result and common mistakes

**Body:** With a 50 percent nest, half the sheet is skeleton, so the scrap credit can offset a meaningful part of the cost when the scrap price is high relative to the purchase price. Aluminium and stainless scrap hold much more value than carbon steel. Common mistakes include using gross part area with holes included, ignoring kerf and part spacing when estimating the nest count, and forgetting that remnants may be reusable rather than scrapped. Track actual utilization from your ERP and compare it with quoted assumptions.

**Cta:** If material standards, remnants and scrap returns live in separate files, we can help bring them into your ERP so costing reflects what really happens at the saw and the laser.

**Faq:**

#### What is a good material utilization for sheet metal?

**Answer:** It depends heavily on part shape. Compact parts nested well can exceed 80 percent, while irregular or large parts may sit near 50 to 60 percent. Compare against your own job history rather than a single target.

#### Should scrap credit be passed to the customer?

**Answer:** It is a commercial decision. Many quotes use net cost when material is bought for the job, and some contracts require scrap to be credited. Check the customer agreement.

#### How do I handle remnants?

**Answer:** If a remnant is stocked and reused, value it at purchase price less a handling allowance rather than scrap price, and track it in inventory so the cost is not lost.

#### Does this include kerf?

**Answer:** Kerf is not modelled directly. Include it by reducing the achievable parts per sheet or by using the nesting software count, which accounts for spacing and kerf.

## Search terms

sheet metal material cost per part, scrap credit calculator, sheet weight calculator, material utilization sheet metal, skeleton scrap value, net material cost per part, steel sheet weight formula

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