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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.

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Formula

Pass-Through % = (Price Increase / Cost Increase) × 100

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.

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