Pricing & Margin Calculator
Explore prices, costs, margins, discounts, and the sales-volume trade-off behind a price change.
Compare prices
Compare your current and proposed prices to see how the contribution from each sale changes and how much sales volume could change while maintaining your current contribution.
Why are we asking this?
This is the price you currently charge for one unit, product, service, or transaction.
Example: If a product currently sells for $500, enter 500.
Why are we asking this?
Variable costs are costs that increase when you sell additional units.
Example: If materials, packaging, transaction fees, or other per-unit costs total $200, enter 200.
Why are we asking this?
We use your current sales volume as the baseline for comparing the current and proposed prices.
Example: If you currently sell about 100 units each month, enter 100.
Why are we asking this?
This is the price you are considering charging instead of your current price.
Example: If you are considering raising the price from $500 to $550, enter 550.
Why are we asking this?
If you expect customers to receive a discount from the proposed price, enter that percentage here.
Example: A 10% discount on a $550 proposed price results in an effective selling price of $495.
Why look at pricing and margin?
A price is more than the amount a customer pays. It also determines how much money remains after the costs that increase with each sale.
Comparing your current price with a proposed price helps you see the trade-off between earning more from each sale and potentially selling fewer units.
The goal is not to tell you which price you should choose. Instead, the calculator helps you understand what would need to happen for a proposed price to maintain the contribution generated by your current sales volume.
How the calculation works
The calculator compares the amount left from each sale after variable costs.
Selling price − Variable cost
It then multiplies the contribution per unit by your current monthly sales volume to estimate the contribution generated under the current price.
Contribution per unit × Current units per month
Finally, the calculator estimates how many units would be needed at the proposed price to generate the same contribution.
Current contribution ÷ Proposed contribution per unit
What the result can tell you
The calculator gives you a simple way to think about how much sales volume could change before the proposed price produces less contribution than your current situation.
For example, if the calculator says you can tolerate a 15% decline in volume, the proposed price could generate approximately the same contribution even if monthly sales fall by up to about 15%.
This does not mean a 15% decline will actually happen. It simply shows the volume change that the current assumptions could absorb.
What this calculation does not include
This is a simplified pricing comparison. It does not predict how customers will respond to a price change.
It also does not automatically account for fixed costs, taxes, competitor reactions, changes in demand, customer acquisition costs, capacity limitations, inventory effects, or changes in other operating expenses.
Treat the result as a planning reference rather than a forecast of actual sales.
This tool provides estimates based on the information entered. It is intended to support thinking and planning, not replace professional accounting, tax, legal, financial, or other advice.