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Ten percent up, eight percent fewer units
The list price is 80 and variable cost is 48, so contribution is 32 a unit. You sell 1,000 units today. A 10 percent rise moves the price to 88. You expect units to fall 8 percent, to 920.
Current selling price: 25% lower
Change current selling price to 60 while keeping the other example values the same.
Current selling price: 25% higher
Change current selling price to 100 while keeping the other example values the same.
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Quick answer
What does the Price increase impact calculate?
What does this price rise do to revenue and contribution after a volume change? This calculator uses current selling price, current unit sales, variable cost per unit, price increase, and expected volume change to estimate contribution after a price rise and volume change immediately in your browser.
With the values currently entered, the result is $4,800.00 — extra contribution after the change. It also shows revenue change, new contribution, new price, new unit sales, and volume change that holds contribution.
How to use the Price increase impact
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Current selling price
- Current unit sales — entered in units
- Variable cost per unit
- Price increase — entered in %
- Expected volume change — entered in %
Price increase impact formula
New price = price × (1 + increase). New units = units × (1 + volume change). Contribution change = (new price − variable cost) × new units − (price − variable cost) × units.
Assumptions
- SBA writes contribution margin as price minus the cost to make the product. This page keeps that leftover after a list-price change and the volume you type.
- Variable cost per unit stays the same. Mix, extra promotion cost, and unused capacity are left out.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Defines contribution margin as the difference between price and the cost to make the product, and writes the ratio as (price − variable cost) ÷ price.
Glossary of Business Financial TermsUS Small Business AdministrationScope: US small-business financial-statement termsDefines current assets, current liabilities, working capital, Days Receivable, Days Payable, GPM%, and break-even analysis from fixed cost, variable cost, and profit.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Price increase impact example and edge cases
A price rise changes revenue and contribution together. SBA writes contribution as price minus variable cost. This page applies that leftover after the new price and the volume you expect to lose, or gain.
Example: Ten percent up, eight percent fewer units
The list price is 80 and variable cost is 48, so contribution is 32 a unit. You sell 1,000 units today. A 10 percent rise moves the price to 88. You expect units to fall 8 percent, to 920.
- Current selling price
- 80
- Current unit sales
- 1,000 units
- Variable cost per unit
- 48
- Price increase
- 10 %
- Expected volume change
- -8 %
Calculated result$4,800.00extra contribution after the change
Contribution rises by 4,800, from 32,000 to 36,800. Revenue only rises by 960. The volume drop that holds contribution flat is 20 percent. An 8 percent reaction still leaves you ahead on leftover.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the contribution change first. Revenue can rise while leftover falls if the new price sits close to variable cost.
- The hold-contribution volume line is the reaction that keeps leftover where it started. Compare your expected change with that line.
Edge cases worth checking
The rise also needs extra ads
Add that spend in your head, or raise variable cost to cover it. This formula only moves price and the unit count you type.
You are testing a discount instead
Use the discount break-even calculator. That page asks how many extra units hold contribution after a cut.
What changes the result most
Current selling price
Use a current amount for current selling price. Include fees or recurring costs that belong in the same figure.
Current unit sales
Use the count you expect in real life. Round up when a partial units cannot be purchased or used.
Variable cost per unit
Use a current amount for variable cost per unit. Include fees or recurring costs that belong in the same figure.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Current selling price: 25% lower
60$4,560.00extra contribution after the change
Current selling price: 25% higher
100$5,040.00extra contribution after the change
Current unit sales: 25% higher
1,250 units$6,000.00extra contribution after the change
Common mistakes
Check current selling price
SBA writes contribution margin as price minus the cost to make the product. This page keeps that leftover after a list-price change and the volume you type. Make sure this matches the number you enter.
Keep expected volume change consistent
Variable cost per unit stays the same. Mix, extra promotion cost, and unused capacity are left out. Use the same units and time period throughout the calculation.
Do not rely on one price increase impact scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What does this price rise do to revenue and contribution after a volume change?
It does not replace a quote, contract, accountant, or local employment guidance.