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FX Impact on Profit

In one line: See how much profit and margin you lose (or gain) when the exchange rate moves against you — before it actually happens.

When to use

  • Pricing a SKU sourced in one currency and sold in another
  • Stress-testing margin before a rate-sensitive purchase order
  • Deciding whether to hedge or lock a forward rate

Inputs

Field Notes
USD selling price Your listing price in the sales currency
Local cost Procurement cost in CNY or your sourcing currency
Current FX rate Today's rate used to convert cost into the sales currency
FX swing % The adverse (or favorable) move you want to test, e.g. ±5%

Outputs

  • Profit change — absolute profit before vs. after the swing
  • Margin change — margin percentage points lost or gained
  • Stressed margin — your resulting margin under the tested swing

Steps

  1. Open https://www.niceggie.com/tools/fx-impact
  2. Enter USD selling price, local cost, current FX rate, and the FX swing %
  3. Profit change and stressed margin update instantly
  4. Compare against a favorable swing to see the full range of outcomes

Thin margins amplify FX risk

FX moves the cost side, not the price side. If cost is 70% of your selling price, a 5% adverse rate move erases roughly 3.5 points of margin. On a 10-point margin that is a third of your profit gone — the thinner the margin, the more a currency swing matters.

FAQ

Which exchange rate should I enter — spot or the rate I actually paid?

Use the rate at which your cost was (or will be) settled. If you already paid the supplier, that locked rate is your baseline and only future orders are exposed. If the order is still ahead of you, use today's spot rate and test the swing against it.

Does an FX move change my selling price too?

Not automatically. Your listing price is set in the sales currency and stays fixed until you change it. The swing hits the converted cost, which is why an adverse move compresses margin even when price is unchanged — and why repricing or hedging is the lever you control.

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