Measure how demand for one good responds to another good’s price.
Positive: the goods are substitutes.
Please do not make financial decisions based on these results.
What is the Cross Price Elasticity Calculator?
Measure how demand for one good responds to another good’s price. To use the Cross Price Elasticity Calculator, enter good a quantity, before, good a quantity, after, good b price, before, good b price, after; it returns cross price elasticity, and shows them instantly as you type.
Where the Cross Price Elasticity Calculator fits
Measure how demand for one good responds to another good’s price. The main figure it returns is the Cross price elasticity, worked out from the values you enter.
It belongs with the other accounting & microeconomics tools. If you are comparing options or checking a result from another angle, try the Price Elasticity of Demand Calculator, Income Elasticity of Demand Calculator or the Optimal Price Calculator.
How to use the Cross Price Elasticity Calculator
- Fill in the fields. You will need Good A quantity, before, Good A quantity, after, Good B price, before ($), Good B price, after ($). Use numbers from the same accounting period so the ratios are comparable. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Cross price elasticity. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Cross Price Elasticity Calculator using the default values shown in the calculator above:
Inputs
| Good A quantity, before | 500 |
|---|---|
| Good A quantity, after | 560 |
| Good B price, before ($) | 4 |
| Good B price, after ($) | 4.5 |
Results
| Cross price elasticity | 0.96 |
|---|
With these inputs the calculator returns Cross price elasticity: 0.96. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Good A quantity, before from 500 to 600 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Cross price elasticity | 0.96 | -0.59 | -160.9% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What do positive and negative values mean?
Positive means substitutes; negative means complements.
What is the difference between EBIT and EBITDA?
EBITDA also adds back depreciation and amortization, so it approximates operating cash profit.
Which accounting standard do the formulas follow?
They use the common textbook definitions that apply under both US GAAP and IFRS unless a tool says otherwise.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related accounting & microeconomics calculators
- Price Elasticity of Demand Calculator
- Income Elasticity of Demand Calculator
- Optimal Price Calculator
- Consumer Surplus Calculator
- Degree of Operating Leverage Calculator
- Revenue Calculator
- Net Profit Margin Calculator
- Operating Margin Calculator
- Revenue Growth Calculator
- Month-Over-Month Calculator
- Cash Ratio Calculator
- Working Capital Turnover Ratio Calculator
All Accounting & Microeconomics calculators →