Free tool
Price Increase Calculator
A 10 % price increase on a 40 % margin lets you lose up to one sale in five while earning as much as before. The tool gives you that threshold for your price increase.
A price increase goes straight into your margin, since the cost stays the same. To keep the same total margin, sales can fall by the ratio between the margin before and the margin after. With a 100 € price and a 60 € cost, a 10 % increase takes the margin from 40 € to 50 €: you can lose 20 % of your sales and keep your margin.
Planning A Price Increase?
An increase changes your margin, so what your campaigns can pay for a sale. It is the right time to reset your bidding targets.
20 minutes · No commitment · 100% confidential
How the threshold of a price increase works
Margin before = Price − Cost Margin after = Price × (1 + Increase) − Cost Sales you can lose = 1 − Margin before ÷ Margin after
At 100 € excl. VAT with a 60 € cost, each sale leaves 40 €. With a 10 % increase the price goes to 110 € and the margin to 50 €. Your 3,000 sales left 120,000 €; 2,400 sales are enough to keep that margin.
It mirrors a discount, and it works in your favour: the thinner your margin, the more room a price increase gives you. With an 80 € cost instead of 60, the same 10 % increase takes the margin from 20 € to 30 €: you can lose a third of your sales.
The threshold tells you how many customers can leave before the increase costs you. How many will actually leave is something you measure, for example by testing the new price on part of your sales.
Before you raise your prices
- Compare several increases: 5 %, 10 % and 15 % open very different room for manoeuvre.
- Recalculate your target ROAS: a higher margin lowers the minimum ROAS of your campaigns.
Frequently asked questions
What is the formula for a price increase?
New price = Current price × (1 + Increase). For 10 % on 100 €: 100 × 1.10 = 110 €.
How many customers can I lose after a price increase?
Divide your margin before by your margin after and subtract the result from 1. With 40 € before and 50 € after: 1 − 40 ÷ 50 = 20 % fewer sales for the same margin.
How do I calculate a price increase percentage?
Subtract the old price from the new one, divide by the old price, then multiply by 100. From 100 € to 112 €: 12 ÷ 100 × 100 = 12 % increase.
Growth partner
Positioning, acquisition, innovation: together we build a lasting growth system.
Théo MaupiléFreelance Paid Media
Google PartnerSuperMalter
