Price Increase Impact Calculator
Calculate the impact of price increases on revenue and sales. Free price increase calculator for SMBs, founders, and pricing teams.
Price Increase Impact Calculator
Calculate the impact of price increases on revenue and sales. Free price increase calculator for SMBs, founders, and pricing teams.
Generated: 2/22/2026, 12:34:18 AM | AskSMB.io
Calculate Price Increase Impact
Input Values
Existing product or service price
Percentage increase applied to current price
Number of units sold per month
Expected % change in sales volume after price increase (can be negative)
Enter all values to see results
Current price must be greater than zero
How the Price Increase Impact Calculator Works
Why price increases matter
Price increases are a critical lever for business growth and sustainability. Unlike cost-cutting, which has limits, pricing has unlimited upside potential. A 5% price increase can boost profits by 20-50% depending on your margins. However, increases must be strategic - too high and you lose customers, too low and you leave money on the table. This calculator helps you model scenarios to find the optimal balance between price and volume.
Price vs demand relationship
Price and demand have an inverse relationship - as price goes up, demand typically goes down. This relationship is called the demand curve. However, the strength of this relationship varies dramatically by product type, market position, and customer perception. Premium brands often see minimal volume loss from price increases. Commodities see large drops. Understanding your specific price-demand curve through testing is essential for pricing decisions.
Understanding elasticity
Price elasticity of demand measures how sensitive your customers are to price changes. It's the percentage change in quantity demanded divided by the percentage change in price. Elastic products (elasticity > 1) see large volume swings with small price changes - think luxury items or products with many substitutes. Inelastic products (elasticity < 1) maintain volume despite price changes - necessities like medication or utilities. Knowing your elasticity helps predict the impact of price adjustments.
When price increases increase revenue
Price increases boost revenue when the percentage price gain exceeds the percentage volume loss. For example, a 10% price increase with only 5% volume loss yields 4.5% revenue growth. This works best when you have strong brand loyalty, unique value propositions, high switching costs, or operate in markets with few alternatives. It also works during inflationary periods when customers expect increases. The key is ensuring your value justifies the higher price.
Pricing strategy best practices
Successful pricing requires continuous testing and refinement. Start with small increases (5-7%) to minimize risk. Communicate changes transparently and emphasize added value. Time increases strategically - after launching new features, during strong demand periods, or following competitor moves. Segment customers and test different prices by group. Monitor metrics like customer lifetime value, acquisition cost, and churn rate. Consider annual small increases (3-5%) rather than large sporadic jumps. Most importantly, price based on value delivered, not just costs incurred.
Formula
Where:
- New Price=Current Price × (1 + Price Increase % ÷ 100)
- New Sales Volume=Current Sales Volume × (1 + Sales Change % ÷ 100)
- Revenue Before=Current Price × Current Sales Volume
- Revenue After=New Price × New Sales Volume
- Revenue Impact=Revenue After - Revenue Before
Example Scenario
New price = $50 × 1.10 = $55 | New sales volume = 1,000 × 0.95 = 950 | Revenue before = $50 × 1,000 = $50,000 | Revenue after = $55 × 950 = $52,250
Tips & Best Practices
- •Test small price increases (5-10%) first to gauge customer response
- •Communicate value and justify increases to customers
- •Monitor competitor pricing before making changes
- •Consider grandfathering loyal customers at old prices
- •Time increases with new features or improvements
- •Track customer retention and acquisition costs post-increase
Frequently Asked Questions
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💡 Quick Tips
- •All calculations happen in your browser - your data is private
- •Results update in real-time as you type
- •Export to PDF or share via link
- •No sign-up required