Pricing elasticity calculator

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Measure how demand responded to a price move and whether the revenue outcome actually improved.

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Elasticity

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Enter the old and new price plus demand to estimate elasticity and revenue impact.

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Example calculations

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Price increase with demand drop

$20 to $24 while units fall from 1,000 to 820

A classic elasticity check where the business wants to know whether a higher price actually improves revenue.

Result: Demand is slightly elastic, so the higher price reduces modeled revenue instead of lifting it.

Inelastic essentials case

Moderate price lift with a smaller unit loss

Useful for categories where customers are slower to change buying behavior after a price move.

Result: When demand is inelastic, revenue can still rise even after units soften.

Discounting test

Cheaper price with stronger demand response

A downside test for promotions that might lift unit volume more than enough to offset the lower price.

Result: Elastic categories can justify price cuts only if the unit response is strong enough.

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