# RMB/USD Contract Margin and Breakeven FX Calculator

> Source: https://netray.co/tools/china-rmb-usd-contract-margin-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Find the margin on a USD-priced order built with RMB costs, the breakeven exchange rate and the profit swing per 1 percent move.

## Category

cost-finance

## Erp

Kingdee / Yonyou

## Industry

Manufacturing

## Region

China

## Audience

- Finance controller
- Sales manager
- Procurement

## Tool

**Kind:** calculator

**Currency:** CNY 

**Inputs:**

#### Unit price

**Key:** usd_price

**Type:** number

**Default:** 48

**Min:** 0

**Step:** 0.5

**Unit:** USD

#### Contract quantity

**Key:** units

**Type:** number

**Default:** 20000

**Min:** 0

**Step:** 500

**Unit:** units

#### Expected CNY per USD at settlement

**Key:** fx

**Type:** slider

**Default:** 7.2

**Min:** 6.4

**Max:** 7.6

**Step:** 0.02

**Help:** Use your forward rate or planning rate.

#### RMB cost per unit

**Key:** rmb_cost

**Type:** number

**Default:** 245

**Min:** 0

**Step:** 1

**Unit:** CNY

**Help:** Material, labor and overhead per unit, VAT excluded.

#### Fixed order costs

**Key:** fixed

**Type:** number

**Default:** 150000

**Min:** 0

**Step:** 5000

**Unit:** CNY

**Help:** Tooling, freight, certification and similar one-off costs in CNY.

**Outputs:**

#### Revenue in CNY

**Key:** revenue

**Expr:** usd_price * units * fx

**Format:** currency

#### Total cost in CNY

**Key:** cost

**Expr:** rmb_cost * units + fixed

**Format:** currency

#### Profit in CNY

**Key:** profit

**Expr:** revenue - cost

**Format:** currency

**Primary:** true

#### Margin on revenue

**Key:** margin

**Expr:** profit / max(revenue, 1) * 100

**Format:** percent

**Primary:** true

#### Breakeven CNY per USD

**Key:** be_fx

**Expr:** cost / max(usd_price * units, 1)

**Format:** decimal

**Description:** Below this rate the order loses money.

#### FX cushion to breakeven

**Key:** cushion

**Expr:** (fx - be_fx) / max(fx, 0.01) * 100

**Format:** percent

#### Profit swing per 1% FX move

**Key:** per_pct

**Expr:** revenue * 0.01

**Format:** currency

**Chart:**

#### Profit vs CNY per USD

**Type:** line

**X:** fx

**From:** 6.4

**To:** 7.6

**Steps:** 25

**Series:**

- profit

**Disclaimer:** Planning estimate only. Ignores hedging cost, bank charges, tax effects and payment-term financing.

## Content

**Intro:** A USD price with RMB costs is a currency bet. When the yuan strengthens, the same order earns fewer yuan. This calculator gives the breakeven rate, the cushion and the profit swing so sales and finance can agree a safe price floor before quoting.

**Sections:**

#### How to use it

**Body:** Enter the unit price in USD, quantity, the expected settlement rate, RMB cost per unit and fixed order costs. The slider for the settlement rate shows margin movement instantly, and the chart sweeps the whole range. Compare the breakeven rate with the current spot and forward rate. If the cushion is under about 3 percent, a normal month of volatility can wipe out the margin, so consider a forward contract or a clause that reprices on a rate trigger.

#### The formulas

**Body:** Revenue in CNY is USD price times quantity times the rate. Profit is revenue minus RMB cost. Breakeven rate is total RMB cost divided by total USD revenue. The cushion is how far the expected rate sits above breakeven. The swing per 1 percent equals revenue times 0.01, which is the cleanest way to size a hedge.

**Bullets:**

- Breakeven FX = total RMB cost / total USD revenue
- Margin = profit / revenue in CNY
- Hedge size is roughly the USD revenue not yet covered

#### Common mistakes

**Body:** People often forget that cost is not fully in RMB. Imported components priced in USD offset part of the exposure, so only the net USD position is at risk. Another mistake is quoting from spot while payment arrives 90 days later. In your ERP, keep a rate table per contract and store the planning rate with the sales order, so you can later compare planned margin with actual margin at settlement.

**Cta:** If your Kingdee or Yonyou sales orders do not carry a planning exchange rate, we can help add one and report planned versus actual margin.

**Faq:**

#### What if some of my costs are in USD?

**Answer:** Reduce the RMB cost to the RMB-only portion, and subtract the USD-denominated cost from USD revenue before using the tool. Only the net USD position creates currency risk, and natural hedging can be large.

#### Should I use spot or forward rate?

**Answer:** Use the rate you can actually lock in for the settlement date. A forward rate includes the interest differential, so it can differ from spot. For uncovered orders use a conservative planning rate.

#### How big should the FX cushion be?

**Answer:** There is no fixed rule. A cushion that exceeds the typical monthly move of the pair, with room for the length of your payment terms, is a reasonable starting point. Finance should set the policy.

#### Does it include export VAT refund?

**Answer:** No. Refund and non-deductible VAT change your RMB cost. Compute that separately with the export VAT calculator and enter the net cost per unit here.

## Search terms

rmb usd margin calculator, breakeven exchange rate calculator, cny usd contract profit, fx sensitivity manufacturing quote, china exporter fx risk, usd priced rmb cost margin, fx cushion calculator, currency risk quote calculator

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