Free business tools · How Businesses Win

Price Change Calculator

A higher contribution per sale can still produce less total contribution. Compare the complete scenario before changing your price.

1. Enter comparable scenarios

Use one currency and one period throughout. Volume means completed sales or paying members in that period.

Current offer
Proposed offer

2. Compare contribution

Current total contribution30,000.00
Proposed total contribution28,000.00

Whole-unit volume needed to preserve current contribution750

Contribution = price − variable cost. Total contribution = volume × contribution per unit. This is before fixed costs, taxes and financing; it is not net profit.

Your scenario comparison

Save up to eight scenarios. They remain only in this open page; the tool does not estimate demand. Changing the current offer clears saved comparisons.

PriceUnit costAssumed volumeTotal contributionVolume needed
Download worksheet + worked example (PDF)

Two pages. Fillable worksheet and a completed teaching example. Free to download; no email required.

Turn the threshold into an experiment

Fix the offer, customer segment and observation period. Estimate whether demand will stay above the calculated volume; then compare actual purchases, renewals, refunds and service costs. A threshold is a question to investigate, not evidence that buyers will accept the new price.

When the comparison needs more work

The preservation threshold is shown only when current and proposed unit contribution are both positive and current volume is above zero. Non-positive contributions are still displayed honestly, but do not support the usual “customers you can afford to lose” interpretation. A required volume above the current one means additional sales are needed. Prices and unit costs can have two decimal places; volumes are whole units.

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