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Price increase calculator: what a raise in prices does for you
The short answer
Divide the increase by the old price and multiply by 100. Going from $150 to $165 is a 10% increase. If each sale costs you $90, profit per sale goes from $60 to $75. So you could lose 20 of every 100 customers and still make the same profit. That’s why small price increases usually help more than they hurt.
Raising prices feels risky until you see the math. Enter your numbers to see how much room you have.
The increase
10%
$15.00 more per sale, taking profit per sale from $60.00 to $75.00.
- Extra profit if nobody leaves
- $1,500
- Customers you could lose and still come out even
- 20 (20%)
How it works
- Percent increase = (new price − old price) ÷ old price × 100.
- New price from a percent = old price × (1 + percent ÷ 100).
- Customers you can lose = 1 − (old profit per sale ÷ new profit per sale).
| Margin now | Profit per $100 sale | After 10% more | Customers you can lose |
|---|---|---|---|
| 20% | $20 | $30 | 33.3% |
| 30% | $30 | $40 | 25% |
| 40% | $40 | $50 | 20% |
| 50% | $50 | $60 | 16.7% |
How to tell customers
Tell them ahead of time, give the date and keep it short. A sentence on why is plenty, and regular customers can get a little longer to adjust. Try it on new customers first, if you’re nervous. To see what the opposite does, try the discount calculator.
Common questions
How do I calculate a percentage price increase?
How do I add a percentage to a price?
How much should I raise my prices?
How do I tell customers about a price increase?
Will I lose customers?
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Priced right? Now make sure you catch the calls
CoveDesk picks up when you can’t and texts back the callers you miss.