# Cost of Waste Calculator

Our calculator will help you determine the costs you create from time wasted and process inefficiency in your business. Give it a try!

Use the calculator below to work out the real cost of not maintaining great documentation.

## Number of Technical StaffFocus on technical team ROI |
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## Average Annual Salary ($)For all employees |
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## Gross Margin (%)(Revenue - Cost of Goods Sold) / Revenue |
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## Time Wasted Due to Bad Documentation (%)Experts estimate @ 20-30% |
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## Monthly Cost of Time Waste(Number of Tech Staff) * (1 Month Labor) * (Time Wasted) |
$6,912 | |

## Monthly Opportunity Cost(Monthly Cost of Time Waste) / (1 - Gross Margin %) |
$13,824 | |

$20,736 |

### Calculations Explained

The monthly cost of time waste is based first on calculating the time wasted each month. In your case this is **20%** of your teams working hours assuming 160 workable hours each month. This equates to **32 hrs**.

Then it calculates the average hourly rate of your team. This is done by dividing your average salaries by 1,600 hours (a conservative estimate of total hours worked a year). This is then multiplied by your technical staff head count and 15% is added as a fully burdened cost. This gives an hourly rate of **$216**.

The monthly cost of time waste is this hourly rate multiplied by the time wasted above.

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