What the result shows
The new monthly profit if price and sales volume stay fixed, plus the break-even price and the price needed to preserve today’s profit.
COGS Inflation & Supplier Cost Calculator
See how separate product-cost and freight increases change monthly profit and the price needed to keep today’s profit at the same sales volume.
Stress-test a supplier or freight increase
Use one product or a reliable average. Keep sales volume fixed so you can isolate the effect of the cost increase.
Price needed to preserve profit
$87.50
Keeping the same monthly profit at the entered sales volume would require a $7.50 increase per unit. Without it, monthly profit changes from $25,000 to $17,500.
- New product cost per unit
- $30.00
- New freight cost per unit
- $7.50
- Price that covers entered monthly costs
- $62.50
- Monthly profit change without a price rise
- -$7,500
Choose how to absorb or pass on the cost increase.
How it is calculated
Apply the entered increase to product cost and freight separately. Subtract the new unit cost and monthly overhead from sales at the current price and volume.
How to use it
Compare the required price increase with supplier savings, packaging changes, new terms, bundles, or accepting a lower margin. Test customer demand before changing the price.
What this result leaves out
Sales volume is held steady. Tax, discounts, payment fees, channel fees, product mix, and stock bought before the increase are not included.
Before you use the result
Should I raise my price by the same percentage as my supplier?
A supplier increase applies to one part of the selling price. Work out the extra cost per unit first, including freight. Then compare the price needed with your margin, customer demand, and alternatives such as packaging or supplier changes.
Does the required price account for losing customers?
Sales volume stays fixed in this calculation. A higher price may reduce orders, so run another case with fewer monthly sales. Also check fees charged as a percentage of selling price when setting the final price.
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