Shipping, defects, delays, and switching work can offset a lower purchase price. Enter known additional costs.
Try this with your own numbersFormula and worked example
Monthly savings = volume × (old unit cost − new unit cost) − extra recurring cost
| Input | Example |
|---|---|
| Monthly purchased units | 200 |
| Current cost per unit | 20 |
| Alternative cost per unit | 18 |
| Extra monthly shipping or service cost | 100 |
| One-time switching cost | 500 |
| Calculated result | 300 per month |
Setup cost to recover separately: 500
Choose reliable inputs
Track purchased quantities, usable yield, labour and waste before deciding on a selling price. For this food truck calculation, use recipe sheets, supplier invoices and stock counts and a consistent definition of one service shift.
- Ingredients: include the portion belonging to this service shift or reporting period, and record where the value came from.
- Staffing: include the portion belonging to this service shift or reporting period, and record where the value came from.
- Site fees: include the portion belonging to this service shift or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
Does the lower unit price always lower total cost?
Shipping, defects, delays, and switching work can offset a lower purchase price. Enter known additional costs.
Assumes equivalent quality and availability; setup cost is displayed separately rather than amortized.
What if this input changes?
If monthly purchased units rises by 10%, this example changes by 40 per month. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.