Small-business finance
Price increase profit impact
Compare profit before and after a price change with explicit volume loss.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
profit=(price-variable)*units-fixed, before vs after.
Volume loss is an assumption, not a demand forecast. Unit variable cost and fixed period cost remain unchanged.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Current unit price (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for current unit price. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
- Proposed unit price (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for proposed unit price. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
- Variable unit cost (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for variable unit cost. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
- Current period unit sales (units): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for current period unit sales. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
- Assumed unit volume loss (%): Explicit ASSUMED change in unit volume; the tool does not predict demand.
- Fixed period cost (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for fixed period cost. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Current period profit is $20,000.00 for the illustrative inputs below.
Example inputs
- Current unit price: $100.00
- Proposed unit price: $110.00
- Variable unit cost: $60.00
- Current period unit sales: 1,000.00 units
- Assumed unit volume loss: 5.00 %
- Fixed period cost: $20,000.00
- Current period profit
- $20,000.00
- Proposed period profit
- $27,500.00
- Profit change
- $7,500.00
- Proposed units
- 950.00 units
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Compare profit before and after a price change with explicit volume loss.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.