Price Increase Impact Calculator
See what a price rise does to profit.
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Model a price increase. Current price, volume, and variable cost per unit: [PRICE_VOLUME_COST]. Fixed costs: [FIXED_COSTS]. Planned increase: [PLANNED_INCREASE]. My guess of the volume loss: [VOLUME_LOSS_GUESS]. Calculate, showing each step: 1. Current profit = (price - variable cost) x volume - fixed costs. 2. New profit with the increase and my guessed volume loss. 3. Break-even volume loss, the largest percent of volume that can be lost before profit falls below today's = increase in price / (new price - variable cost). Output format: 1. A sensitivity table of profit for volume losses of 0, 5, 10, 15, and 20 percent. 2. The break-even volume loss in one sentence. 3. Non-numeric effects (customer trust, competitors, contract terms) in three bullets. 4. Two ways to communicate the change. 5. A recommendation: proceed, phase the increase, or test first, with the reason. Mark my volume-loss figure as a guess and suggest how to test it, for example by offering the new price to new customers first. Label every number and conclusion an estimate, because it is built purely from my inputs. This material is not a substitute for accounting, tax, legal or investment advice. Show the output to an accountant or financial adviser who works in [JURISDICTION] before relying on it.
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