Price increase calculator
Can you afford to raise your prices?
Most owners underprice because they fear losing customers. Put in your numbers and see how many customers you could lose before a price increase stops paying for itself.
| Today | After increase | Change |
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Profit change by customers lost
Every point above the line is money you keep. The line crosses zero at your break-even.
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The rule of thumb
Break-even table
The share of sales volume you could lose before gross profit falls below today’s level. Your current margin and increase are highlighted. Select any cell to load it into the calculator.
The formula
Divide the price increase by the sum of your gross margin and the increase.
Worked example
A business with a 40% gross margin raises prices 10%.
It could lose 1 in 5 customers and earn the same gross profit, while serving fewer customers.
Estimates assume your direct cost per sale and your fixed costs stay the same, so the added gross profit flows to earnings. Business value estimates are illustrative only and are not a valuation or financial advice.
Pricing with confidence
Raise prices without guessing.
Pricing is one of the fastest levers on profit and on what your business is worth to a buyer. Talk with Vision Fox about a pricing plan you can stand behind.