Diagnostic Tool

The Hidden Innovation Tax Calculator

CPG companies pay $5M–$30M annually in innovation costs that never appear on any statement. Four inputs. Thirty seconds. Your number.

Input 01
Annual innovation investment

Total budget committed to new product development - including R&D, consumer research, agency fees, and internal time. Include everything, not just the line marked ‘innovation’.

$12M
$1M$100M+
Input 02
Active launches per year

All products that reach shelf or market in any given year - including line extensions, renovations, and genuinely new products. If you’re unsure, estimate conservatively.

8 launches
150
Input 03
Average first-year revenue per successful launch

Your internal benchmark for what a ‘successful’ new product generates in its first twelve months. If you don’t track this, use your best estimate - it is already an interesting data point.

$5M
$0.5M$50M+
Input 04
Process connectivity score

How well does consumer evidence gathered at the front end of your innovation process inform decisions made at every subsequent stage? Rate honestly.

Your estimated Hidden Innovation Tax
$3.5M - $9.7M

The cost of doing nothing: three years

If the Hidden Innovation Tax compounds at its current rate while private label takes further share and challengers accumulate system advantages.

Year 1
$6.6M
current annual cost
Year 2
$7.1M
compounded (+8%)
3-Year Total
$21.4M
cumulative tax
Catalyx Canvas - your system response

Your highest cost is concentrating in launch outcomes.

Get the full diagnostic for your business.

This calculator gives you the framework. The discovery conversation gives you the specific answer - which layers are concentrating the most cost in your current pipeline, and what addressing them looks like in practice.

Visit our website to find out more about Catalyx Canvas or download our White Paper on The Hidden Cost of Innovation Unpredictability.

This calculator produces directional estimates based on a five-layer cost model developed from named public evidence, including Castellion & Markham (2013), Cooper NPD benchmarking, Stalk & Hout (1990), and Ailawadi, Lehmann & Neslin (2003). All figures represent estimated annual costs for a mid-size CPG company running an active innovation pipeline. They are not audited figures. The full methodology and evidence base is published in The Hidden Cost of Innovation white paper, available at catalyx.com. Layer 4 (circumnavigation) is embedded in Layers 1 and 3 and is not separately counted in this calculator. © Catalyx 2026.
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