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Home Finance Finance Resources Finance Formula MTBF Formula
 

MTBF Formula

Madhuri Thakur
Article byMadhuri Thakur

Updated July 29, 2023

MTBF Formula

 

 

MTBF Formula (Table of Contents)
  • MTBF Formula
  • MTBF Formula in Excel (With Excel Template)
  • MTBF Formula Calculator

MTBF Formula

MTBF is the usual term mainly used in the field of manufacturing industries. It is the average time taken between the two failures. That is the start of last uptime to start of follow up failure. This is predominantly used to access system reliability and compare different system designs. In the current world, this is used in software industries as well for a similar type of prediction.

A formula for MTBF (Mean Time Between Failure) is –

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MTBF = ∑ (TOT) / F

Where,

  • TOT = Total Operational Time which is calculated by using the below formula

TOT = ∑ (Start of Downtime after last Failure – Start of Uptime after last Failure)

  • F = Number of Failures

And Failure Rate is just the reciprocal of MTBF. This can be written mathematically like below.

FR = 1 / MTBF

These measures are generally very helpful in finding a failure rate which can be a preventive measure of many systems. High MTBF value means that the system is too good for operational.

Examples of MTBF Formula (With Excel Template)

Let’s take an example to understand the calculation of MTBF formula in a better manner.

You can download this MTBF Template here – MTBF Template

MTBF Formula – Example #1

The overall operating hours of a system is 10 hours per day. But there are two failures with the downtime of 1 hour and 2 hours. Calculate the MTBF and Failure rate.

MTBF Formula Example 1-1

Solution:

Total Down Time is calculated as:

Calculation of Total Down Time

  • Total Down Time = 1 +2
  • Total Down Time = 3 hours

Since there are 2 failures of 1 and 2 hours, overall downtime for this system is 3 hours.

TOT is calculated using the formula given below

TOT = ∑ (Start of Downtime after last Failure – Start of Uptime after last Failure)

Calculation of TOT

  • TOT = 10 – 3
  • TOT = 7 hours

Hence the overall operational time is 7 hours.

MTBF is calculated using the formula given below

MTBF = ∑ (TOT) / F

Calculation of MTBF Formula

  • MTBF = 7 / 2
  • MTBF = 3.5 hours

Hence the system will be down for every 3.5 hours that will result in a loss to the organization.

Failure Rate is calculated using the formula given below

Failure Rate = 1 / MTBF

Calculation of Failure Rate

  • Failure Rate = 1 / 3.5
  • Failure Rate = 0.28571

Failure rate per hour would be 0.28571.

MTBF Formula – Example #2

There is a Bank bazaar website. Its availability is 24 hours per day. However, the site is not available during 12-1 PM IST and also another incident during 3-3.30 am IST. What would be the MTBF for this website?

MTBF Formula Example 2-1

Solution:

Total Down Time is calculated as:

MTBF Formula Example 2-2

  • Total Down Time = 1 +0.5
  • Total Down Time = 1.5 hours

Since there are 2 failures of 1 and 0.5 hours, overall downtime for this system is 1.5 hours.

TOT is calculated using the formula given below

TOT = ∑ (Start of Downtime after last Failure – Start of Uptime after last Failure)

TOT

  • TOT = 24 – 1.5
  • TOT = 22.5 hours

Hence the overall operational time can be calculated is 22.5 hours.

MTBF is calculated using the formula given below

MTBF = ∑ (TOT) / F

MTBF Formula

  • MTBF = 22.5 / 2
  • MTBF = 11.25 hours

Hence the system will be down for every 11.25 hours that will result in a loss to the organization.

Failure Rate is calculated using the formula given below

Failure Rate = 1 / MTBF

Failure rate example

  • Failure Rate = 1 / 11.25
  • Failure Rate = 0.08889

Failure rate per hour would be 0.08889.

Hence the system is more stable!!

Explanation

Below is the step by step approach for attaining MTBF Formula.

Step 1: Note down the value of TOT which denotes Total Operational Time. It can be calculated by deducting the start of Uptime after the last failure from the start of Downtime after the last failure. Simply it can be said the productive operational hours of a system without considering the failure duration.

T = ∑ (Start of Downtime after last failure – Start of Uptime after last failure)

Step 2: Note down the value of F. It is the number of failures occurred in a system.

Step 3: Finally MTBF can be calculated using the above formula.

MTBF = TOT / F

Step 4: Failure Rate is just the reciprocal value of MTBF. Thus the formula is,

FR = 1 / MTBF

Relevance and Uses of MTBF Formula

MTBF value simply tells about a product’s survival time. It is very important in Hardware product Industries rather than consumers. It is simply the number of failures occurring per hour. Consumers mostly go with a price-driven approach hence do not mind much about MTBF. When it comes to industries, based on MTBF values only systems with different designs are compared. This value tells about Reliability, stability, and performance of a system. Because a system’s performance relies on its stability. How often it gets a failure and how productive it is. Low MTBF always denotes that the system is not stable and not much operational. And for critical products such as Airplanes, safety equipment assets, inverters, generators, etc., performance and stability are very important.

In this case, MTBF is the indicator of Performance expected from a specific system and also a metric for reliability and acts as a tool at the stage of design and production of hardware. This metric is simply known as average life expectancy. The wrong predictions of a product’s stability lead to poor designs and performance of systems. This says how often a product to be maintained to avoid breakdowns. An also MTBF is a current status indicator of performance in plant maintenance as a preventive maintenance schedule.

MTBF Formula Calculator

You can use the following MTBF Calculator

Σ(TOT)
F
MTBF Formula
 

MTBF Formula =
Σ(TOT) =
F
0 = 0
0

Recommended Articles

This has been a guide to MTBF Formula. Here we discuss how to calculate MTBF along with practical examples. We also provide MTBF calculator with a downloadable Excel template. You may also look at the following articles to learn more –

  1. Marginal Propensity to Consume Formula
  2. Leverage Ratio Formula
  3. How to Calculate Equity Value
  4. Formula for Nominal Interest Rate

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