Tariff cost increase
calculator
Worked example
Example: a $50 imported part now $62.50, ~120 parts a month across 60 jobs
$25.00
extra cost per job
- Extra / month
- $1,500
- Price increase
- 2.8%
Illustrative · enter your own below
(Finding your numbers)
What to enter.
- 01Previous and current cost: the landed cost per unit before and after the tariff, from supplier invoices or notices.
- 02Units per month: how many of the affected items you use in a normal month.
- 03Jobs per month and average job price: from your invoicing software.
(Pricing it)
Passing on a tariffs increase fairly.
01
Name it specifically
A 'tariff surcharge' tied to specific products is more credible than a general price rise, and easier to remove if the tariff changes.
02
Keep the supplier notice
Supplier letters that cite the tariff support your explanation to commercial customers.
03
Recover only the tariff
Customers increasingly know which goods are affected. Surcharges that clearly exceed the tariff cost damage trust.
01Can I add a tariff surcharge to invoices?
Generally businesses can add a disclosed surcharge, but check your contracts and any state rules on surcharges. Show it clearly as a separate line and explain what it covers.
02What if tariffs are removed later?
That's the advantage of a surcharge: remove it when your landed cost falls. Say so in your customer notice.
03How do I handle many affected products?
Total the monthly extra cost across affected items and enter it as one cost with a unit cost of $1 per dollar spent, or run each major item separately.
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