Finance Tools

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.

Estimate the sales volume increase required to offset higher unit costs when prices cannot be increased.

Baseline
Baseline unit profit: $40.00 · Total profit: $400,000
Cost inflation
New unit profit: $34.00
Result

Required units sold: 11,765
Additional units needed: 1,765
Required volume increase: 17.65%

This shows how much volume must increase to keep total profit unchanged when unit costs rise and price stays fixed.

How it works

  • Baseline profit = (price − unit cost) × baseline units.
  • New unit profit = price − increased unit cost.
  • Required units = baseline profit ÷ new unit profit.
  • Volume increase = (required − baseline) ÷ baseline.

How to use this required volume increase to offset cost inflation calculator

  1. Enter your current price, unit cost, and baseline sales volume.
  2. Enter the expected unit cost increase (percentage or absolute).
  3. Assume price stays constant.
  4. See the required sales volume increase to maintain the same total profit.

Example

Price is $100, unit cost is $60, and baseline sales are 10,000 units. Unit cost increases by 10%.

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