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Primary formula: required price = cost response required by the selected protection mode

Educational only: Business decision support, not accounting, tax or legal advice.

Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.

Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

What this planner helps you decide

Best for

Owners responding to a verified supplier unit-cost change.

Outputs

Margin loss, protected price, volume recovery and incremental cash cost.

Start here

Enter the old and new cost on the same ex-tax basis, then choose the commercial outcome to protect.

Use a different tool when: Do not use this to protect a negotiation floor; use Minimum Profitable Price Planner for that decision. Use this tool to respond to a supplier cost increase.

Decision pack · Step 1 of 5

Protect Margin

Move from a supplier-cost shock to a defensible price, realistic sales threshold and cash-impact check.

  1. 1. Measure the cost shock
  2. 2. Set the target price
  3. 3. Test allowable volume change
  4. 4. Confirm break-even
  5. 5. Review cash impact

Current decision: How much margin does the supplier or freight increase remove?

Next: Carry the revised cost into a target-price decision.

Price & margin

Supplier Cost Increase Impact: margin loss

Margin loss, protected price, volume recovery and incremental cash cost.

Amounts use the same currency as your inputs. No currency conversion is performed.

Supplier Cost Increase Impact

Choose a price or volume response to a supplier cost increase.

Your numbers stay in this browser

currency units

Previous supplier cost, excluding tax.

currency units

New supplier cost, excluding tax.

currency units

Current selling price, excluding tax.

Units in the comparison period.

currency units

Other variable cost per unit.

currency units

Price response to test.

Decision result

Every result is derived by the registered pricing engine.

PDF and CSV exports stay on this device. Clean page links contain no inputs.
Required price
89.60
Period Profit Loss Ex Tax
-6,000.00
Incremental Cash Cost Ex Tax
6,000.00
Required Volume
1,000

Scenario comparison

Each row names the assumption axis changed from the baseline.

ScenarioResultDifference
Current scenario89.60Baseline
Lower Planned price89.600.00
Higher Planned price89.600.00

Save these results, change an input, then compare the updated figures with this baseline.

The baseline is temporary in this tab and is not added to shared scenario links or generated reports.

Calculation details

View calculation detailsView the formulas and inputs used for these results.

Required price

Required Price Ex Taxnew total unit cost ÷ (1 − baseline margin)89.60 , ex tax
Result89.60

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Supplier Cost Increase Impact Planner formulas
Inputs used by these formula steps
Required Price Ex TaxOld Unit Cost Ex Tax
40
Required Price Ex TaxNew Unit Cost Ex Tax
46
Required Price Ex TaxCurrent Price Ex Tax
80
Required Price Ex TaxVolume
1,000
Required Price Ex TaxOther Variable Cost Ex Tax
10
Required Price Ex TaxPlanned Price Ex Tax
86

Period Profit Loss Ex Tax

Period Profit Loss Ex Tax(new unit contribution − old unit contribution) × volume-6,000 , ex tax
Result-6,000.00

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Supplier Cost Increase Impact Planner formulas
Inputs used by these formula steps
Period Profit Loss Ex TaxOld Unit Cost Ex Tax
40
Period Profit Loss Ex TaxNew Unit Cost Ex Tax
46
Period Profit Loss Ex TaxCurrent Price Ex Tax
80
Period Profit Loss Ex TaxVolume
1,000
Period Profit Loss Ex TaxOther Variable Cost Ex Tax
10
Period Profit Loss Ex TaxPlanned Price Ex Tax
86

Incremental Cash Cost Ex Tax

Incremental Cash Cost Ex Tax(new supplier cost − old supplier cost) × volume6,000 , ex tax
Result6,000.00

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Supplier Cost Increase Impact Planner formulas
Inputs used by these formula steps
Incremental Cash Cost Ex TaxOld Unit Cost Ex Tax
40
Incremental Cash Cost Ex TaxNew Unit Cost Ex Tax
46
Incremental Cash Cost Ex TaxCurrent Price Ex Tax
80
Incremental Cash Cost Ex TaxVolume
1,000
Incremental Cash Cost Ex TaxOther Variable Cost Ex Tax
10
Incremental Cash Cost Ex TaxPlanned Price Ex Tax
86

Required Volume

Required Volumeceil(baseline period contribution ÷ planned unit contribution)1,000 operational units
Result1,000

Uses the entered assumptions on one consistent ex-tax commercial basis. The engine retains full precision; presentation is bounded for readability.

Supplier Cost Increase Impact Planner formulas
Inputs used by these formula steps
Required VolumeOld Unit Cost Ex Tax
40
Required VolumeNew Unit Cost Ex Tax
46
Required VolumeCurrent Price Ex Tax
80
Required VolumeVolume
1,000
Required VolumeOther Variable Cost Ex Tax
10
Required VolumePlanned Price Ex Tax
86

Inputs used

Old unit cost
40
New unit cost
46
Current price
80
Current volume
1,000
Other variable cost
10
Planned price
86
Open this calculator with preset values

This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.

Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.

Example: https://margin101.com/tools/supplier-cost-increase-impact/?sv=1&currentPriceExTax=80&newUnitCostExTax=46&oldUnitCostExTax=40&otherVariableCostExTax=10&plannedPriceExTax=86&volume=1000

ParameterMeaningUnitAllowed valuesPresenceDefault
currentPriceExTaxCurrent selling price, excluding tax.currency units/product unit, ex tax0 to 10000000Required80
newUnitCostExTaxNew supplier cost, excluding tax.currency units/product unit, ex tax0 to 10000000Required46
oldUnitCostExTaxPrevious supplier cost, excluding tax.currency units/product unit, ex tax0 to 10000000Required40
otherVariableCostExTaxOther variable cost per unit.currency units/product unit, ex tax0 to 10000000Required10
plannedPriceExTaxPrice response to test.currency units/product unit, ex tax0 to 10000000Required86
volumeUnits in the comparison period.whole product units/comparison period0 to 10000000Required1000

Supplier Cost Increase Impact: margin loss

The protected-price result shows the response required to preserve the selected commercial outcome after the supplier increase.

Formula summary

Primary formula
required price = cost response required by the selected protection mode

Read the full methodology

Data used here

  • The estimate uses your inputs and the general business formula documented in the methodology.

Decision checks

Act on the result

Choose whether to absorb, pass through or offset the verified unit-cost increase and record the effective date.

Stress-test the decision

Retest the protected price against plausible volume loss and any supplier rebate not included in the unit cost.

When this estimate can be misleading

  • Results depend on the accuracy and consistent basis of your inputs.
  • The planner does not predict demand, competitor behaviour or supplier terms.
  • Use the result as educational business decision support, not accounting, tax or legal advice.
  • The protected-price result shows the response required to preserve the selected commercial outcome after the supplier increase.

Educational estimate, not advice. See all assumptions & limitations →

Guides to interpret the decision and its assumptions.

Frequently asked questions

How do I respond to a supplier cost increase?

Choose whether to absorb, pass through or offset the verified unit-cost increase and record the effective date.

Which planning assumptions should I stress-test?

Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.