MarginShock

Material cost increase
calculator

When a supplier raises prices on lumber, pipe, wire, mulch, chemicals, or parts, the increase hides inside every job until margins slip. Enter what you used to pay and what you pay now to see the extra cost per job and the price change that recovers it.

Worked example

Example: a key material up 15%, ~400 units a month across 80 jobs

$9.00

extra cost per job

Extra / month
$720
Price increase
0.8%

Illustrative · enter your own below

Surcharge engine · inputs

Example numbers — replace with yours

Example: a key material up 15%, ~400 units a month across 80 jobs

The cost that changed
$
$
How much you use

From fuel cards, receipts, or supplier invoices.

How many jobs the cost is spread across.

Your pricing
$

Used to express the surcharge as a %.

%

e.g. 20 for 20%.

Unit change

▲ 15.0%

Extra / month

$720

Extra / job

$9.00

No account needed. Inputs are saved anonymously to build industry benchmarks — never shown individually. Privacy

(Finding your numbers)

What to enter.

  1. 01Previous and current cost: per unit from your supplier invoices (per board, per bag, per foot, per part).
  2. 02Units per month: from a normal month of purchase orders. If several materials rose, run each one, or use total material spend with a unit cost of $1.
  3. 03Jobs per month and average job price: from your invoicing software.

(Pricing it)

Passing on a materials increase fairly.

01

Update quotes before invoices

Material increases are easiest to pass on in new quotes. Add an expiry date (14–30 days) so quotes don't outlive your supplier's prices.

02

Use a material escalation clause

For long projects, a clause that adjusts for documented material price changes protects you without re-bidding.

03

Show the supplier increase

Commercial customers often accept increases backed by a supplier notice. Keep the letter on file.

(FAQ)

Materials cost questions

Guide: how much to raise prices →
01How much should I raise prices when material costs go up?

At minimum, by your extra material cost per job, which keeps your profit in dollars the same. To keep the same margin percentage, raise slightly more. The calculator shows the per-job amount; our pricing guide explains both.

02What if only some jobs use the material?

Enter only the jobs that use it as your job count, or apply the increase to the line items that contain that material.

03Should I add a materials surcharge or raise prices?

If the price could fall back (commodity swings), a temporary surcharge is easy to remove. If it's a lasting supplier increase, update your prices.

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