BusinessFree

Cost Pass-Through Calculator

Calculate the pass-through percentage of a business cost increase. See how much of the extra expense you are passing to clients versus absorbing yourself.

Enter Values

Your Retail Price Increase ($)

Supplier Cost Increase ($)

Result

Enter values above and click Calculate to see your result.

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Formula

Core Formula

\text{Pass-Through \%} = \frac{\text{Price Increase}}{\text{Cost Increase}} \times 100

How it works: Measures the ratio of your retail price adjustment relative to the underlying supply cost hike.

Worked Example

If your cost goes up by $10 and you raise your price by $8, you have an 80% pass-through rate.

Managing Price Adjustments

Passing through costs is a delicate balance between survival and customer loyalty.

A lower pass-through rate can act as a marketing advantage.
Total absorption (0% pass-through) is usually only sustainable in the short term.
Track your pass-through and margin separately to see the true health of the business.

Use this data to communicate transparently with your regular clients.

You can also calculate changes using our Price Increase Needed Calculator or Fuel Surcharge Pass-Through Calculator.

Frequently Asked Questions

What is 100% pass-through?

It means you have raised your price by the exact same dollar amount as your cost increase, meaning you absorb nothing but make no extra profit.

Why would I pass through less than 100%?

To remain competitive and keep volume high, or if you believe the cost hike is temporary.

Can I embed this Cost Pass-Through Calculator on my website?

Yes. Click the "Embed" button at the top of this page to customize the size, colors, and theme, then copy the iframe code. Paste it into any HTML page, WordPress site, or CMS. It is completely free, requires no signup, and works on all devices. You can also visit our embed guide at calculory.com/services/embed-calculators for more details.

AI Assistant

Ask about this calculator

I can help you understand the cost pass-through calculator formula, interpret your results, and answer follow-up questions.

Try asking

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