Scenario arithmetic only. Actual demand response, discounts, mix, churn, taxes, and competitor reactions can differ.
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Calculation details
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What does this calculator estimate?
Price increase calculator: model how a price rise affects demand, volume, and contribution profit so you can see the real impact before you raise. Free, private.
How this calculator works
Formula
Current and new revenue equal price × units. Contribution equals (price − variable cost) × units. Maximum demand loss preserving current contribution equals 1 − current unit contribution ÷ new unit contribution.
Worked example
Moving from $50 to $60 with $30 variable cost and a 10% volume decline increases contribution from $20,000 to $27,000 on 1,000 current units.
Assumptions to verify
- Variable cost per unit remains constant.
- The entered volume change represents the complete demand response.
- Discounts, mix, churn, taxes, competitor reactions, and capacity changes are excluded.
Frequently asked questions
What does allowable demand loss mean?
It is the volume decline that leaves modeled contribution unchanged, not a predicted customer response.
Why compare contribution?
Revenue alone ignores variable costs and can make a price change look better or worse than its unit economics.
Is demand response linear?
Not necessarily; this calculator uses only the single volume-change assumption you enter.
Cite this tool
BoringToolsKit. “Price Increase Impact Calculator.” boringtoolskit.com/price-increase-impact-calculator/ (reviewed July 2026). Free to reference in articles, syllabi, and answer posts with a link.
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Worked example: $20 to $25 with a 10 percent volume loss
Inputs: current price $20.00, new price $25.00, current units 1,000, volume change -10 percent, variable cost $8.00. New units: 1,000 x 0.90 = 900. Today's margin is $20.00 - $8.00 = $12.00, so current contribution is $12.00 x 1,000 = $12,000.00. The new margin is $25.00 - $8.00 = $17.00, so new contribution is $17.00 x 900 = $15,300.00 and the headline delta is +$3,300.00. Revenue rises from $20,000.00 to $22,500.00 (+$2,500.00); the other $800 is variable cost never incurred on the 100 unsold units. $2,500 + $800 = $3,300.
The 29.4% figure is (1 - 12/17) x 100 = 29.4118%, using the $12.00 and $17.00 margins. Read it as a volume floor: holding contribution at $12,000.00 needs $12,000 / $17.00 = 705.9 units, 70.6% of the original 1,000, so volume can fall 29.4% before the increase stops paying. The entered -10% sits inside that floor.
Boundary checks: zero volume change, the cap, and rejected inputs
At 0 percent volume change the same inputs return 1,000 units, revenue $25,000.00, contribution $17,000.00, delta +$5,000.00, and the allowable loss stays 29.4% because it depends only on price and variable cost, not on volume. Enter the cap exactly, -29.411765%, and units fall to 705.882, contribution returns to $12,000.00, the delta reads -$0.00, and revenue drops to $17,647.06, below the original $20,000.00. At -35% units are 650 and delta -$950.00. At -100% delta is -$12,000.00; -101% is rejected as a negative retained volume.
Cost guards fire too: variable cost $20.00 against a $20.00 price returns an error, not a zero-margin answer. Margin moves the cap hard. Variable cost $19.00 leaves $1.00 of margin and allowable loss jumps to 83.3%; variable cost $0.00 gives 20.0%. A price cut flips the sign: $20.00 to $10.00 with 20% more units sells 1,200, earns $2,400.00 contribution against $12,000.00, delta -$9,600.00, and allowable shows -500.0%, meaning no demand loss preserves contribution. Contribution is not profit: fixed costs, taxes, and competitor response sit outside every number here.