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Will your surcharge cover an input-cost shock?
Compare material inflation with the recoverable surcharge after exemptions and collection leakage.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Annual affected units
- 100,000
- Material cost / unit
- $12
- Material cost increase
- 18 %
- Surcharge / billed unit
- $2
- Units eligible for surcharge
- 80 %
- Surcharge actually collected
- 95 %
Annual unrecovered cost shock
Example result only, not a forecast or promise.
- Annual material inflation
- $216,000
- Surcharge recovery
- $152,000
- Break-even surcharge / eligible unit
- $3
What to do with this result
Identify excluded contracts and billing leakage before choosing a surcharge or renegotiation approach.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Cost shock = units × material cost × inflation. Recovered = units × eligible share × collection share × surcharge.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Contribution excludes fixed overhead, tax and financing; validate demand response before changing prices.