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Does a price increase still work under weaker demand?

Use an explicit elasticity assumption to model revenue and contribution, not just the price uplift.

Example scenario

Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.

Price / unit
$80
Variable cost / unit
$42
Annual units
20,000
Price change
8 %
Demand elasticity magnitude
1.2 ×
Annual contribution change$42,752

Example result only, not a forecast or promise.

Modeled volume
18,080
Modeled revenue
$1,562,112
Modeled contribution
$802,752

What to do with this result

Estimate elasticity from comparable transactions or a controlled test; use a range rather than treating it as a known constant.

Know what is inside the model.

Planning model, not personalized financial advice. Your inputs remain in your browser.

Calculation method

Volume factor = max(0, 1 − elasticity × price change). Contribution change = units × volume factor × (new price − unit cost) − current contribution.

Assumptions and limitations

  • Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
  • Contribution excludes fixed overhead, tax and financing; validate demand response before changing prices.

Turn the number into a decision.

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