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Price increase calculator: when supplier prices rise

Price rise (%) = (New price − Old price) ÷ Old price × 100. A kilo of pistachios going from ₺1,100 to ₺1,300 is up 18.2%, so a cheesecake with 40 g costs ₺8 more: quantity used × increase per unit. To keep your margin, the new price is New cost ÷ (1 − Margin); to keep your ₺ profit, it's New cost + Old profit.

Calculator

Result

Price rise18.2%The ingredient's rise; product cost usually rises less

Extra cost per item
₺8.00
New cost per item
₺88.00
Margin at today's price
56.0%
New price, same margin
₺220.00
New price, same ₺ profit
₺208.00

It opened with example numbers; type your own and the result changes at once. Nothing is saved.

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How it's worked out

Price rise

(New buying price − Old buying price) ÷ Old buying price × 100

Extra cost per item

Quantity used × (New unit price − Old unit price)

New selling price

Same margin: New cost ÷ (1 − Old margin) · Same ₺ profit: New cost + Old profit per item

How to use it

  1. Choose the unit your supplier prices it in: kg, litre or piece.
  2. Enter the old and new buying price for that unit; if the pack got smaller, convert to a price per kilo first.
  3. Enter how much one product uses: grams if you chose kg, millilitres if you chose litres.
  4. Add the product's cost before the rise and its current selling price.
  5. Read the rise, the extra cost per item and the margin left, then compare the two new prices: one keeps your margin, the other your ₺ profit.

Watch out

  • A rise doesn't pass through one to one: an 18.2% rise in pistachios lifts this cheesecake's cost by 10%, because pistachios are only part of it.
  • A smaller pack is a price rise too: 800 g for what 1 kg used to cost is 25% more per kilo.
  • Don't wait for old stock to run out; what replaces it comes at the new price, so work from today's purchase.
  • One ingredient often goes into several products, so check each of them; if you don't know a product's full cost, start with the recipe cost calculator.

Frequently asked questions

How do you calculate a percentage price increase?

Subtract the old price from the new one, divide by the old price and multiply by 100. An ingredient that went from ₺1,100 to ₺1,300 per kg rose 200 ÷ 1,100 × 100 = 18.2%. To find a new price from a percentage, multiply the old price by (1 + the rise): ₺1,100 × 1.182 ≈ ₺1,300. Always compare like with like: per kilo, per litre or per piece.

How do back-to-back price rises add up?

You multiply them rather than add them, because each rise lands on top of the last. Two 10% rises in a row make 21%, not 20%: 1.10 × 1.10 = 1.21. Three separate 3% rises stack up to 9.3%. The quickest check is to compare your first and latest buying prices: (Latest price − First price) ÷ First price × 100.

What does it cost me if I don't pass a rise on?

Multiply the extra cost per item by how many you sell a month. If a cheesecake now costs ₺8 more and you sell 300 a month, holding your price costs you ₺2,400 a month, and your margin slips from 60% to 56%. You can choose to absorb that for a while, but set an end date and count the other products that use the same ingredient.

Should I keep the same margin or the same profit?

Either can be right; it depends on your situation. Keeping the margin passes the cost rise through as a percentage: in the example, the price goes from ₺200 to ₺220. Keeping the ₺ profit adds only the cost difference: ₺208. If rent and wages are rising too, keeping the margin is safer; if only one ingredient went up and your customers are price-sensitive, keeping the ₺ profit may be enough.

Have a good day at work!

Çetele tells you the rise as a percentage the moment you enter a purchase, lists the products that use that ingredient and updates their recipe cost by itself.

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