Price increase sales volume calculator
A price rise lifts profit per unit, so you can lose some buyers without earning less. This shows the largest drop you can absorb.
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How to use it
- Enter current price, variable cost per unit and price increase.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Unit profit before = price - cost. After = price × (1 + increase ÷ 100) - cost. Largest drop = (1 - before ÷ after) × 100.
Example
Inputs: Current price = 100, Variable cost per unit = 60, Price increase = 10 %. Result: Largest acceptable drop in units: 20%; New price: 110.00; Unit profit before: 40.00.
Limits and caveats
- Looks at gross profit only and assumes fixed costs stay the same.
- It does not predict how customers will react; it gives the limit to compare against.
Questions about this tool
What does a 20% drop mean?
If you sold 100 units before the rise, selling 80 after it earns the same total profit.
Why only variable cost?
It is the cost that moves with units. Rent and salaries stay the same whether you sell more or less.
Does a smaller drop mean more profit?
Yes. If sales fall by less than this figure, your total profit goes up.