.tci-calculator-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
background: #fff;
padding: 20px;
border-radius: 8px;
box-shadow: 0 2px 10px rgba(0,0,0,0.1);
}
.tci-calc-header {
text-align: center;
margin-bottom: 30px;
background: #f8f9fa;
padding: 20px;
border-radius: 8px;
border-left: 5px solid #2c3e50;
}
.tci-calc-header h2 {
margin: 0;
color: #2c3e50;
}
.tci-form-group {
margin-bottom: 20px;
}
.tci-form-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #333;
}
.tci-input-wrapper {
position: relative;
}
.tci-form-control {
width: 100%;
padding: 12px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
transition: border-color 0.3s;
}
.tci-form-control:focus {
border-color: #3498db;
outline: none;
}
.tci-btn {
background-color: #2c3e50;
color: white;
border: none;
padding: 15px 30px;
border-radius: 4px;
cursor: pointer;
width: 100%;
font-size: 18px;
font-weight: bold;
transition: background-color 0.3s;
}
.tci-btn:hover {
background-color: #34495e;
}
.tci-results {
margin-top: 30px;
display: none;
border-top: 2px solid #eee;
padding-top: 20px;
}
.tci-result-card {
background: #f8f9fa;
padding: 20px;
border-radius: 6px;
text-align: center;
margin-bottom: 15px;
}
.tci-main-value {
font-size: 36px;
font-weight: bold;
color: #2c3e50;
margin: 10px 0;
}
.tci-status {
font-weight: bold;
padding: 5px 10px;
border-radius: 4px;
display: inline-block;
}
.status-good {
background-color: #d4edda;
color: #155724;
}
.status-bad {
background-color: #f8d7da;
color: #721c24;
}
.tci-breakdown {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 15px;
margin-top: 20px;
}
.tci-metric {
background: #fff;
padding: 15px;
border: 1px solid #eee;
border-radius: 4px;
}
.tci-metric-label {
font-size: 14px;
color: #666;
margin-bottom: 5px;
}
.tci-metric-value {
font-size: 20px;
font-weight: 600;
color: #333;
}
@media (max-width: 600px) {
.tci-breakdown {
grid-template-columns: 1fr;
}
}
function calculateTCI() {
// Get inputs
var targetPrice = parseFloat(document.getElementById('targetSellingPrice').value);
var marginPercent = parseFloat(document.getElementById('profitMargin').value);
var currentCost = parseFloat(document.getElementById('currentEstimatedCost').value);
// Validation
if (isNaN(targetPrice) || isNaN(marginPercent) || isNaN(currentCost) || targetPrice <= 0 || currentCost = 1) {
statusElement.innerText = "Target Achieved";
statusElement.className = "tci-status status-good";
costGapElement.style.color = "#155724";
costGapElement.innerText = "+" + gap.toFixed(2) + " (Surplus)";
} else {
statusElement.innerText = "Cost Reduction Needed";
statusElement.className = "tci-status status-bad";
costGapElement.style.color = "#721c24″;
costGapElement.innerText = gap.toFixed(2) + " (Overrun)";
}
}
Target Costing Index (TCI) Calculator
Calculate your product's value engineering efficiency and cost feasibility.
Target Costing Index (TCI)
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Allowable Cost
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Cost Gap
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Target Profit
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Current Margin
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What is the Target Costing Index (TCI)?
The Target Costing Index (TCI) is a critical financial metric used in product management, manufacturing, and value engineering. Unlike traditional "cost-plus" pricing models where the selling price is determined by adding a markup to the production cost, Target Costing starts with the market price.
TCI measures the ratio between what you should be spending (Allowable Cost) and what you are currently spending (Estimated Cost). It acts as a compass for product developers to ensure a product will be profitable before mass production begins.
How the TCI Formula Works
The calculator above uses the standard value engineering formula:
- Step 1: Determine Target Price. What is the market willing to pay for this product?
- Step 2: Subtract Target Profit. Deduct your required profit margin from the Target Price. This leaves you with the Allowable Cost.
- Step 3: Calculate TCI. Divide the Allowable Cost by your Current Estimated Cost.
Formula: TCI = Allowable Cost / Current Estimated Cost
Interpreting Your TCI Rate
The TCI results generally fall into two categories:
- TCI < 1 (e.g., 0.85): Cost Reduction Needed. Your current estimated costs are higher than your allowable cost. If you proceed without changes, you will not meet your profit margin targets. You must engage in value engineering to reduce material or labor costs.
- TCI ≥ 1 (e.g., 1.05): Target Achieved. Your estimated costs are lower than or equal to the allowable cost. You are projected to meet or exceed your profit goals.
Why Use a TCI Calculator?
This tool is essential for Cost Planning during the design phase. By monitoring the TCI rate continuously, teams can identify cost overruns early when they are cheapest to fix. It shifts the focus from "what does it cost?" to "what can it cost?".
Key Definitions
- Allowable Cost
- The maximum amount that can be spent on producing a unit while still achieving the desired profit margin at the target market price.
- Cost Gap
- The difference between the Allowable Cost and the Current Estimated Cost. A negative gap implies a need for cost-cutting measures (Kaizen).
- Drifting Cost
- Another term for Current Estimated Cost, referring to how costs can "drift" upward during the design process if not monitored.