Cost Avoidance Calculator
Enter the old cost, new cost and number of periods to get the cost avoidance.
Result
How to use
- Enter your values in the fields above.
- Press Calculate to see your result instantly.
- Use the Share button to copy a link to your result.
About this calculator
This calculator quantifies cost avoidance — savings from preventing a future cost increase from ever happening, as opposed to cost reduction, which cuts a cost you're already paying. Given an old cost, a new (avoided) cost, and a number of periods, it reports both the per-period saving and the cumulative avoidance over time.
Procurement and finance teams track cost avoidance separately from realized savings on financial statements — locking in a supplier rate before a price hike, or negotiating a renewal below the market's new going rate, are classic examples that never show up as a cash outflow reduction but still represent real value delivered.
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