Finance Tools
Input Cost Increase Break-Even Calculator
Calculate the maximum input cost increase a business can absorb before profit falls to zero.
Find the maximum input cost increase your business can absorb before profit drops to zero.
Break-even input cost increase:
$200,000
Break-even increase as % of current input costs:
13.33%
This is the maximum cost increase you can absorb without raising prices.
How it works
- Profit acts as a buffer against cost increases.
- Once cost increases exceed current profit, profit becomes zero.
- This calculator isolates cost impact without price changes.
FAQ
Does this include fixed vs variable costs?
No—use total input costs as an aggregate for quick analysis.
What if I raise prices?
This tool assumes no price increase. Combine it with pricing tools to test mitigation.
How to use this input cost increase break-even calculator
- Enter annual revenue.
- Enter current total input costs.
- Enter current profit.
- See the break-even input cost increase amount and percentage.
Example
A business earns $2,000,000 in revenue with $1,500,000 input costs and $200,000 profit.
- Maximum absorbable cost increase = current profit
- Break-even cost increase % = profit ÷ input costs
- Beyond this point, profit turns negative
More tools in Finance Tools
- Input Cost Inflation Impact Calculator
Estimate how overall input cost inflation changes total costs, profit, and margin using your current cost structure.
- Unit Cost Increase Break-Even Yield Calculator
Estimate how many additional units you must produce or sell to break even after a unit cost increase (assuming selling price stays the same).
- Contribution Margin Cost Shock Calculator
Calculate contribution margin and operating profit impact from a variable cost increase, including break-even units before and after the shock.
- Required Volume Increase to Offset Cost Inflation Calculator
Calculate how much sales volume must increase to offset higher input costs and maintain the same total profit when prices cannot be raised.