Free Should-Cost Calculator
Break any supplier price into materials, labor, overhead and margin. Get a defensible target in one click.
Want AI-powered should-cost with real benchmarks?
SourcingHub's engine loads category-specific drivers, pulls benchmarks and generates a defensible negotiation target in minutes.
Try SourcingHub freeFrequently asked questions
What is a should-cost analysis?
A should-cost analysis rebuilds a supplier's price from the bottom up — materials, labor, overhead and margin — to give buyers a defensible target instead of relying on the supplier's number.
How does this free calculator work?
You enter the current price, pick a category (which pre-loads typical cost drivers), and adjust materials/labor/overhead/margin percentages. The tool computes a target price, the gap vs current, and exports an editable Excel model.
What's included in the Excel download?
A summary sheet, an editable cost stack, a sensitivity table (±3–5 margin points), and an assumptions sheet documenting the method and buyer notes.
Are the category presets benchmarks?
They're reasonable starting splits by category, not audited benchmarks. Adjust them to match what you know about the supplier's cost structure — the model is transparent so any negotiation is defensible.
How is the paid should-cost engine different?
The full SourcingHub engine loads category-specific drivers, pulls market benchmarks, and generates a defensible negotiation target with AI-authored assumptions and PDF/Excel exports in minutes.