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What changes when your price changes?
See revenue and gross-profit effects, including a change in sales volume.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Annual revenue
- $5,000,000
- Gross margin
- 40 %
- Price change
- 3 %
- Sales volume change
- 0 %
Change in annual gross profit
Example result only, not a forecast or promise.
- Modeled revenue
- $5,150,000
- Modeled gross profit
- $2,150,000
- Gross-profit change
- 7.5%
What to do with this result
Test the price change on one customer segment and track realized price, conversion, volume, and gross profit before rolling it out.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
New revenue = revenue × (1 + price change) × (1 + volume change). New variable cost = existing cost × (1 + volume change).
Assumptions and limitations
- Product mix and variable cost per unit remain constant.
- Gross profit excludes fixed operating expenses, tax, and implementation costs.
- Volume response is your assumption, not an estimated price elasticity.