How is a cardboard rebate calculated?

Usually an index value for your region and month, adjusted by a spread or a percentage, less freight, equipment and quality deductions, multiplied by your net tons.

What is the OCC index?

Most US contracts cite Fastmarkets RISI’s monthly OCC (11) assessment: a price range by region, FOB seller’s dock, in dollars per short ton.

What is a floor price?

A minimum price per ton the buyer pays even when the formula comes out lower.

Can a rebate go negative?

Yes, if freight, equipment or deductions exceed what the formula pays and there is no floor.

2,000 lb. A long or gross ton is 2,240 lb, and some contracts define a gross ton as 2,200 lb.

Usually the buyer’s scale. The contract should require a scale ticket for every load and give you a right to audit.

Should I sign an exclusive?

Only if the price reflects it: an index link, a floor, audit rights and a short exit, limited to the materials and sites actually priced.

Does this site buy recyclables?

No. It explains contracts and does arithmetic. A bid request is passed to buyers who bid on the material.

For distribution centers, retailers and manufacturers

Your recyclables have a price. Your contract decides how much of it you see.

Baled cardboard, pallets, gaylords, totes and film are sold under rebate and buy-back agreements that read a market index, then take freight, rent, moisture and rejections off it. This site explains every clause from your side of the dock, and works out what a load is really worth.

Price a load under your contract Get buyers to bid

3. Price

3.1 Buyer shall pay Seller ~~the prevailing market price~~ 60% of the Index Price less $20.00, and not less than $10.00, per ~~ton~~ short ton (2,000 lb) of Material, ~~less freight and handling as incurred~~ with no deduction for freight.

3.2 "Index Price" means the high side of OCC (11), US Southeast, as first published for the month of shipment.

Three edits, three questionsWhich index? What if it falls? Is freight in the spread or on top?

Same load, three contracts

One load of 30 bales at 1,200 lb (18 short tons), no other deductions. The best offer depends on where the index goes. Example index values, not market prices.

If the index is	Index − $45	60% of index − $20	Flat $35
$60 / ton	$270	$288	$630
$100 / ton	$990	$720	$630
$160 / ton	$2,070	$1,368	$630

Net per load. Try your own offers in the offer comparer, which finds the index level where they cross.

The clause map

Fifteen clauses, in the order most agreements use. Three set the price; the rest add to it or take from it.

All clauses explained →

Real formulas from public contracts

Counties and states publish what private agreements keep confidential. Each one is decoded and can be run in the calculator.

By the ton or by the piece

Cardboard and film are paid by weight; pallets, gaylords, totes and drums by the unit. The clauses that matter follow from that.

Baled cardboard (OCC)	Per ton	Priced per ton, usually off a regional monthly index. Weight, moisture and contamination drive the money.
Used wood pallets	Per unit	Priced per pallet by grade and size. Sorting rules and culls decide the money.
Gaylord boxes	Per unit	Reusable boxes are bought per box by size, wall count and condition. Damaged ones go to the bale.
IBC totes	Per unit	Bought per tote by condition and prior contents. Residue rules can decide whether they can be shipped at all.
Steel, plastic and fiber drums	Per unit	Bought per drum by material, head type and prior contents, or as scrap when not reusable.
Stretch film (LDPE wrap)	Per ton	Baled clear film is sold by weight. Colour, labels, tape and dirt decide whether anyone pays for it.

When you want offers

One request, passed to buyers who bid on your material.

Describe the material. What it is, how much each month, bale weight or counts, and the pickup site.
Buyers bid. Your request is passed to buyers who bid on that material, and they contact you.
Compare on net value. Put the offers in the comparer and check the terms against the term sheet before you sign.

Start a bid request

Short answers

How is a cardboard rebate calculated?: Usually an index value for your region and month, adjusted by a spread or a percentage, less freight, equipment and quality deductions, multiplied by your net tons.
What is the OCC index?: Most US contracts cite Fastmarkets RISI’s monthly OCC (11) assessment: a price range by region, FOB seller’s dock, in dollars per short ton.
What is a floor price?: A minimum price per ton the buyer pays even when the formula comes out lower.
Can a rebate go negative?: Yes, if freight, equipment or deductions exceed what the formula pays and there is no floor.
What is a short ton?: 2,000 lb. A long or gross ton is 2,240 lb, and some contracts define a gross ton as 2,200 lb.
Who weighs the load?: Usually the buyer’s scale. The contract should require a scale ticket for every load and give you a right to audit.
Should I sign an exclusive?: Only if the price reflects it: an index link, a floor, audit rights and a short exit, limited to the materials and sites actually priced.
Does this site buy recyclables?: No. It explains contracts and does arithmetic. A bid request is passed to buyers who bid on the material.

Updated October 28, 2026. Not legal advice. This site publishes no market prices.