---
url: https://www.qualityweb360.com/tools/cost-of-poor-quality/
title: "Cost of Poor Quality Calculator"
language: en
kind: tool
generated: 2026-09-05T07:00:29Z
source: https://www.qualityweb360.com/
---

# Cost of Poor Quality Calculator

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- Cost of Poor Quality Calculator

# Cost of Poor Quality Calculator

# Free Tool — ISO 9001 Quality Management

## Cost of Poor Quality Calculator

Companies lose between 5% and 30% of annual revenue to poor quality costs.
Find out yours in 5 minutes — free.

5 min

to complete

100%

free

PDF

instant report

[Calculate now →](#copq_en)

Cost of Poor Quality Calculator — ISO 9001

1

Data

2

Internal
Failures

3

External
Failures

4

Appraisal

5

Prevention

Step 1 of 5 — General Data

Step 1 — General Data

These inputs calibrate your results against real industry benchmarks.

Industry \* Select...Manufacturing & Industrial ProductionFood & BeverageHealthcare & Life SciencesConstruction & EngineeringTechnology & SoftwareProfessional Services & ConsultingLogistics, Transportation & Supply ChainEnergy & EnvironmentEducation, Training & CertificationGovernment & Public SectorCommerce & ServicesOther / Not applicable This field is required.

Number of employees \*  This field is required.

Approximate annual revenue (USD) \* Less than $500,000$500,000 – $2,000,000$2,000,000 – $10,000,000More than $10,000,000 This field is required.

Average monthly salary per employee (USD) \*  This field is required.

Next →

Step 2 — Internal Failures

Defects caught before reaching the customer: rework, scrap, and re-inspection.

% of products/services requiring rework (0–100) \* Percentage that doesn't come out right the first time.  This field is required.

Weekly hours spent on rework \* Total team hours per week fixing failures.  This field is required.

% of wasted material (scrap) over monthly production cost (0–100) \* Materials or inputs that are discarded.  This field is required.

Weekly hours of re-inspection after corrections \* Re-verifying products already corrected.  This field is required.

← Back Next →

Step 3 — External Failures

Defects that reach the customer: returns, complaints, and penalties.

Number of customer returns or rejections per month \*  This field is required.

Average cost per return in USD (time + logistics + replacement) \*  This field is required.

Number of formal customer complaints per month \*  This field is required.

Monthly hours spent handling complaints \*  This field is required.

Average annual contractual penalties in USD (0 if none) \*  This field is required.

← Back Next →

Step 4 — Appraisal

Costs of verifying quality: inspections and audits.

Number of quality inspections per month \*  This field is required.

Average hours per inspection \*  This field is required.

Internal audits per year \*  This field is required.

Hours per audit (preparation + execution) \*  This field is required.

← Back Next →

Step 5 — Prevention

Investment in preventing failures: training, document control, and quality meetings.

Quality training hours per year \*  This field is required.

Monthly hours for QMS document control \*  This field is required.

Monthly hours in quality meetings \*  This field is required.

← Back See my result →

Estimated annual cost of poor quality

$0

0% % of annual revenue

…

The full breakdown and **3 industry-specific recommendations** are in your personalized report.

Generate my full report →

### Generate your full report

Enter your details to see the detailed breakdown and recommendations for your company.

First Name \*  This field is required.

Last Name \*  This field is required.

Business email \*  Please use a business email (no Gmail, Hotmail, etc.).

Company \*  This field is required.

Industry \* Select...Manufacturing & Industrial ProductionFood & BeverageHealthcare & Life SciencesConstruction & EngineeringTechnology & SoftwareProfessional Services & ConsultingLogistics, Transportation & Supply ChainEnergy & EnvironmentEducation, Training & CertificationGovernment & Public SectorCommerce & ServicesOther / Not applicable This field is required.

View my full report →🔒 Your data is protected · No spam

### Your Cost of Poor Quality Report

#### 📍 Your 3 biggest loss areas

#### 💡 Recommendations for your company

⬇ Download PDF ReportReady to reduce these costs?

[Discover QualityWeb 360 →](https://www.qualityweb360.com/)

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y+=6;doc.setTextColor(...dark);doc.setFont('helvetica','bold');doc.setFontSize(13);doc.text(T.pdf_recs_sub,20,y);y+=10; const dr=[]; if(R.grand>0){if(R.internal.total/R.grand>0.40)dr.push(T.recs.internal);if(R.external.total/R.grand>0.30)dr.push(T.recs.external);if(R.eval.total/R.grand>0.25)dr.push(T.recs.eval);if(R.prev.total/R.grand<0.10||R.prev.total<1)dr.push(T.recs.prev);if(dr.length===0)dr.push(T.recs.default);} dr.slice(0,3).forEach((rec,i)=>{doc.setFont('helvetica','bold');doc.setFontSize(10);doc.setTextColor(...blue);doc.text((i+1)+'.',20,y);doc.setFont('helvetica','normal');doc.setTextColor(...dark);const ls=doc.splitTextToSize(rec,158);doc.text(ls,28,y);y+=ls.length*6+5;}); // P5 Back cover doc.addPage(); doc.setFillColor(...blue);doc.rect(0,0,210,297,'F'); try{doc.addImage(logo,'PNG',80,28,50,18);}catch(e){} doc.setTextColor(...white);doc.setFont('helvetica','bold');doc.setFontSize(20); doc.text(T.pdf_back_h[0],105,88,'center');doc.text(T.pdf_back_h[1],105,102,'center'); doc.setFont('helvetica','normal');doc.setFontSize(12); 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## What is Cost of Poor Quality?

Everything your company spends because things were not done right the first time: rework, returns, scrap, inspections, and more.

**Cost of Poor Quality (COPQ)** is the total financial cost a business incurs when products or services fail to meet quality standards. It encompasses internal failures (rework, scrap), external failures (returns, warranty claims), appraisal activities (inspections, testing), and prevention efforts. Industry research shows COPQ represents **5–30% of annual revenue** for most companies.

##### What is COPQ?

All costs incurred from not doing things right the first time: rework, returns, scrap, re-inspection, and more.

##### Why measure it?

Without data, you cannot prioritize. Knowing your COPQ gives clarity on where to invest to reduce real losses immediately.

##### What to do with the result?

Justify quality investments, identify bottlenecks, and build an evidence-based improvement plan.

Want to eliminate these losses for good?

[ Request Demo → ](https://www.qualityweb360.com/demo-request/)

## Reduce these costs?

Hundreds of companies already manage their quality more efficiently with QualityWeb 360.