RMB/USD Contract Margin and Breakeven FX Calculator
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.
Your numbers
Use your forward rate or planning rate.
Material, labor and overhead per unit, VAT excluded.
Tooling, freight, certification and similar one-off costs in CNY.
Your results
Planning estimate only. Ignores hedging cost, bank charges, tax effects and payment-term financing.
Profit vs CNY per USD
Sweeps Expected CNY per USD at settlement from 6.4 to 7.6, holding your other inputs fixed.
Planned vs actual margin report
Optional: we can look at how your ERP stores exchange rates on orders and build a planned versus actual margin view.
Optional. The tool and every export work without this. No spam.
How to use it
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
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.
- 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
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.
Frequently Asked Questions
What if some of my costs are in USD?
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?
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?
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?
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.
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.
Related Tools
China Export VAT Refund Calculator (Exempt, Offset, Refund)
Estimate the refund, the VAT that stays in cost, and the carry-forward credit for an export order under the exempt, offset and refund (mian di tui) method.
Supply Chain & InventoryChina Sourcing Landed Cost Calculator (FOB to US Delivered)
Build the true delivered cost per unit of a China FOB purchase, then test how a tariff change moves it.
Costing & FinanceChina Contract Manufacturing Transfer Price Calculator (Cost Plus)
Set the cost-plus price a China manufacturing subsidiary charges its group, see profit and tax, and check the markup against your benchmark range.
More Costing & Finance tools
See all- China Plant Labor Cost Calculator (Social Insurance, Housing Fund, Overtime)
- SAP QM Inspection Effort and Cost Calculator
- SAP Standard Cost Estimate BOM Rollup Calculator
- Legacy ERP Retirement Cost and Payback Calculator
- JD Edwards World Month-End Close Procedure Template
- Distributor Customer Credit Application Template
- Distributor Customer Profitability Worksheet
- Distributor GMROI and Inventory Turns Calculator
- Vendor Early Pay Discount Worksheet