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Quantify the impact
Every result updates as you type. Formulas and assumptions are shown beneath each calculator.
Input Cost Increase Calculator
NZD
NZD
%
Extra direct costs$72,000
Original gross profit$600,000
Revised gross profit$528,000
Original margin40.0%
Revised margin35.2%
Price rise to recover gross profit $4.8%
Price rise to restore margin %8.0%
Revenue needed to restore margin %$1,620,000
How this is calculated
- Extra cost = direct costs × increase %
- Recovering gross profit dollars needs revenue to rise by the extra cost
- Restoring margin % needs revenue = new direct costs ÷ (1 − original margin)
- Price rises assume unchanged sales volume — customers may buy less