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Supplier Price Rise Calculator

Calculate the weighted impact of a specific supplier's price hike on your total Cost of Goods Sold (COGS). Helps prioritize negotiation efforts.

Enter Values

Supplier Price Increase (%)

Supplier Share of Your COGS (%)

Result

Enter values above and click Calculate to see your result.

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Formula

Core Formula

\text{COGS Impact} = \text{Supplier Hike \%} \times \text{Supplier Share of COGS}

How it works: A mathematical way to see how much your total inventory cost will rise based on the importance of the supplier being analyzed.

Worked Example

If a major supplier (40% of your COGS) raises prices by 10%, your total cost of goods rises by 4%.

Analyzing Supplier Increases

A 10% increase doesn't always mean your costs go up by 10%.

Diversifying suppliers can lower your "Supplier Share" risk.
Prioritize negotiations with suppliers who have the highest weighted impact.
Use this data to decide where to start looking for alternative sources.

Focused data leads to more effective supplier negotiations.

You can also calculate changes using our Price Increase Needed Calculator or Purchase Order Cost Adjustment Calculator.

Frequently Asked Questions

What is weighted impact?

It is a calculation that accounts for the size of a supplier. A 50% hike from a small supplier may hurt less than a 5% hike from your main supplier.

How do I calculate "Supplier Share of COGS"?

Take the total amount you spend with that supplier per year and divide it by your total annual Cost of Goods Sold.

Is it possible to embed the Supplier Price Rise Calculator on another website?

Yes, embedding the Supplier Price Rise Calculator is free. Hit the "Embed" button on this page, adjust the width, height, and theme, then grab the iframe code. It works on WordPress, Wix, Squarespace, Shopify, and plain HTML pages. No registration needed. Full instructions at calculory.com/services/embed-calculators.

AI Assistant

Ask about this calculator

I can help you understand the supplier price rise calculator formula, interpret your results, and answer follow-up questions.

Try asking

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Price Increase Needed Calculator Purchase Order Cost Adjustment Calculator

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