The supply cost of a procedure is the sum of each item used times its unit cost. Comparing it to the fee gives the supply-cost percentage — a key overhead lever.
The example
Items used for a filling.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Σ qty × cost | $18.40 |
| 3 | ÷ $200 fee | → 9.2% |
The formula
The formula:
How it works
How it works:
- List each supply used in the procedure with its quantity and unit cost.
- SUMPRODUCT(quantities, unit_costs) totals the supply cost in one cell.
- Supply % of fee = supply cost ÷ procedure fee — benchmark it (often ~6–8%).
- Multiply by monthly volume to budget supply spend.
Supply cost percentage flags the procedures and products worth a closer look. A filling at 9% supply cost versus a benchmark of 6–8% suggests either underpricing or an expensive material — both fixable. Building procedures from a unit-cost table with SUMPRODUCT makes the number exact and lets you test substitutions (a cheaper consumable, bulk buying) against the fee instantly.
Try it: interactive demo
Supply cost and procedure fee.
Variations
Supply % of fee
Cost ÷ fee:
Monthly supply spend
× volume:
Margin after supplies
Fee − supplies:
Pitfalls & errors
All consumables. Include single-use items, anesthetic, materials.
Unit cost. Cost per item used, not per box.
Zero fee. Supply % on a $0 fee gives #DIV/0!.
Practice workbook
Frequently asked questions
How do I calculate supply cost per procedure in Excel?
What's a good supply-cost percentage?
How do I budget supply spend?
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