Find revenue and the effect of a price change on units sold using elasticity.
Please do not make financial decisions based on these results.
What is the Price / Quantity Calculator?
Find revenue and the effect of a price change on units sold using elasticity. To use the Price / Quantity Calculator, enter current price, current quantity, price change, price elasticity of demand; it returns new revenue, new quantity, current revenue, revenue change, and shows them instantly as you type.
Where the Price / Quantity Calculator fits
Find revenue and the effect of a price change on units sold using elasticity. The main figure it returns is the New revenue, worked out from the values you enter.
It belongs with the other business planning tools. If you are comparing options or checking a result from another angle, try the Direct Material Price Variance Calculator, Break-even Calculator or the Lemonade Stand Calculator.
How to use the Price / Quantity Calculator
- Enter your numbers. Start with Current price ($), Current quantity, Price change (%), then fill in Price elasticity of demand (negative). Use figures from the same period (same month, quarter or year) for every field. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the New revenue, and the cards below show New quantity, Current revenue, Revenue change. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Price / Quantity Calculator using the default values shown in the calculator above:
Inputs
| Current price ($) | 20 |
|---|---|
| Current quantity | 1,000 |
| Price change (%) | 10 |
| Price elasticity of demand (negative) | -1.5 |
Results
| New revenue | $18,700.00 |
|---|---|
| New quantity | 850 |
| Current revenue | $20,000.00 |
| Revenue change | -$1,300.00 |
With these inputs the calculator returns New revenue: $18,700.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Current price ($) from 20 to 24 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| New revenue | $18,700.00 | $22,440.00 | +20% |
| New quantity | 850 | 850 | 0% |
| Current revenue | $20,000.00 | $24,000.00 | +20% |
| Revenue change | -$1,300.00 | -$1,560.00 | -20% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Price / Quantity Calculator reports New revenue, new quantity, current revenue and revenue change. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
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
How does elasticity change revenue?
If demand is elastic a price rise cuts revenue; if inelastic it raises revenue.
What is the most important number for a new business?
Cash runway. A profitable plan still fails if cash runs out first, so check burn rate and break-even together.
Can these calculators replace an accountant?
No. They give fast estimates from your inputs. Use an accountant for tax, audited accounts and valuation reports.
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 business planning calculators
- Direct Material Price Variance Calculator
- Break-even Calculator
- Lemonade Stand Calculator
- Liquid Net Worth Calculator
- Accumulated Depreciation Calculator
- Lerner Index Calculator
- PVGO Calculator
- Average Fixed Cost Calculator
- Cost Function Calculator
- Effective Corporate Tax Rate Calculator
- EMV Calculator – Expected Monetary Value
- FIFO Calculator for Inventory
All Business Planning calculators →