Supplier Surcharge Pass-Through Calculator

Quantify how a supplier surcharge ripples through your P&L. Enter baseline cost, surcharge percentage, planned customer pass-through, volume, and optional list price to see the updated sell price, recovered share of the surcharge, margin shift, and the cash shortfall left to close each month.

Direct cost per unit before any temporary surcharges or adders.
Percent adder the supplier is applying this month. Include fuel, freight, or raw-material adjustments.
Portion of the surcharge you will add to customer pricing immediately.
Expected sell-in units for the month across impacted SKUs.
Optional. Defaults to a 25% markup over cost if left blank.

Financial estimates are directional; validate with your pricing and finance teams before finalizing increases.

Examples

  • Cost $38.50, surcharge 12.5%, pass-through 60%, price $52.00, 18,000 units → New price $55.89; Recovered 60.00% of surcharge; Margin shift -4.88%; Revenue gap $35,112.00 per month.
  • Cost $22.00, surcharge 8%, pass-through 80%, price $28.00, 9,500 units → New price $30.41; Recovered 80.00% of surcharge; Margin shift -1.94%; Revenue gap $3,344.00 per month.

FAQ

How can I analyze multiple customer segments?

Run the calculator for each segment with its own pass-through percentage, then blend the revenue gaps to understand the total shortfall across your book.

What if I raise base prices in addition to passing through the surcharge?

Increase the current selling price input to reflect list price moves, then compare the margin shift against your guardrails to confirm the total impact.

Does the tool include freight or fuel escalators that fluctuate monthly?

Yes. Bundle fuel, freight, and commodity surcharges into the percentage so you can refresh the math each month as those inputs change.

How do I plan coverage for multiple months of surcharges?

Multiply the revenue gap by the number of months you expect the surcharge to stay in market, or export the figures into your rolling forecast to track recovery.

Additional Information

  • Customer pass-through is capped between 0% and 100% so you can model conservative, partial, or full recovery scenarios.
  • Revenue gap represents incremental sales dollars required to cover the share of the surcharge you absorb instead of passing on.
  • Margin percentages compare contribution before and after the surcharge so you can communicate dilution to finance and sales leadership.
  • Use the monthly revenue gap output to size temporary surcharges, targeted price increases, or promotional cuts needed to stay on plan.

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