Pricing Tool 07

Currency
& FX Buffer

Model your USD-equivalent COGS when sourcing in foreign currency. Calculate what margin buffer to build in, stress-test against rate swings, and find your break-even exchange rate.

1Sourcing Currency

Source Currency

COGS in CNY

Factory cost per unit in source currency

Exchange Rate (1 USD = X CNY)

Current spot or forward rate

COGS in USD (Current Rate)

Other USD Costs ($)

Freight, duty, 3PL not in foreign COGS

Total COGS (USD)

2Pricing & Current Margin

Wholesale Price (USD $)

MSRP (USD $)

Current WS Margin

Target Minimum WS Margin (%)

Margin vs Target

3FX Buffer & Risk Scenarios

Buffer Rate (% of FX COGS)

Add to COGS as reserve for rate moves

Buffered COGS (USD)

Buffered WS Margin

Margin after FX reserve applied

Worst-Case Rate (1 USD = X CNY)

Unfavorable - fewer foreign units per $1

Best-Case Rate (1 USD = X CNY)

Favorable - more foreign units per $1

Break-Even Rate (1 USD = X CNY)

Rate at which WS margin = 0%

Current WS Margin - at current exchange rate

USD
COGS

FX Buffer
Reserve

Buffered
Margin

USD COGS Build-Up

Foreign COGS (CNY) -

Exchange rate applied -

FX COGS in USD -

+ Other USD costs -

Total COGS (USD) -

WS Price -

Gross Profit -

FX Scenario Analysis

Scenario	Rate	COGS $	WS Margin

P23-EDU · TWENTY3 Intelligence Pricing Tool 07 · Currency & FX Margin Buffer · Multi-Currency COGS Conversion · Best / Worst Case Rate Scenarios · Break-Even Exchange Rate · FX Reserve Buffer Modeling · P23-EDU · TWENTY3 Intelligence Pricing Tool 07 · Currency & FX Margin Buffer · Multi-Currency COGS Conversion · Best / Worst Case Rate Scenarios · Break-Even Exchange Rate · FX Reserve Buffer Modeling ·

FX Margin Buffer Calculator