Pricing & contribution
Price Increase & Sales Loss Calculator
See how many sales you could lose after a price increase while preserving the same modeled profit. Test a volume-loss scenario against your current business.
07 / TEST A PRICE CHANGE
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INPUT GROUP 01
Current sales and costs
Use one consistent period and the same unit: a job, item, subscription or service.
INPUT GROUP 02
Proposed change
The new price must exceed the current price. Demand response is your assumption.
Check the assumptions before acting on a result.
Read the method and exampleYOUR CALCULATION
The entered price change increases modeled profit.
Profit after price change
Profit change
Retained unit volume
Minimum units to preserve profit
Maximum whole units lost
Maximum whole-unit volume loss
New-price profit at selected volume losses
| Volume loss | Retained units | Profit | Change from baseline |
|---|---|---|---|
| 0.00% | 1,000 | $40,000.00 | $10,000.00 |
| 10.00% | 900 | $35,000.00 | $5,000.00 |
| 20.00% | 800 | $30,000.00 | $0.00 |
| 30.00% | 700 | $25,000.00 | -$5,000.00 |
Illustrative inputs loaded. Replace them with your own assumptions.
How the price increase & sales loss calculator works
Contribution per sale is price minus variable unit cost. Period profit is sales volume times contribution, less the entered fixed costs. This calculator compares a price increase while holding unit variable cost and period fixed costs unchanged.
Minimum new sales to preserve profit = ceil(current volume × (current price − variable cost) ÷ (new price − variable cost)). The whole-sale ceiling means the threshold does not leave profit below the baseline. Maximum whole sales lost = current volume − minimum new sales.
The maximum loss percentage is based on those whole sales. A modeled loss scenario retains floor(current volume × (1 − loss percentage ÷ 100)) sales. Rounding down makes that scenario conservative when a percentage leaves a fraction of a sale.
The current price must exceed variable cost and the proposed price must be higher than the current price. This tool does not estimate price elasticity or predict customer behavior. Changes in product mix, discounts, cost per sale, fixed costs, collection losses and taxes need a separate scenario. Baseline and scenario profits can be negative when fixed costs exceed contribution.
Worked example
At a current price of $100, variable cost of $60 and 1,000 sales, contribution is $40,000. After $10,000 fixed costs, baseline profit is $30,000. Raising the price to $110 gives $50 contribution per sale. You need 800 sales to preserve that profit, allowing 200 lost sales, or 20%. A 10% volume loss leaves 900 sales and $35,000 profit, a $5,000 increase. This is an illustrative sensitivity calculation, not a demand forecast.
Sources and assumptions
The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.
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