Business OntologyBusiness Ontology

Free calculator

Should I raise prices?

A higher price earns more on every sale but may cost some sales. This shows the volume you can lose and still come out ahead.

Example: raising a $50 product with $20 unit cost by 10%

Raising the price to $55 increases monthly contribution by $1,300 at a 5% volume loss.

New price
$55
Contribution per unit, now → new
$30 → $35
Units per month after the change
380
Monthly contribution, now
$12,000
Monthly contribution, after
$13,300
Volume you can lose and still break even
14.3%
How this is calculated (v1.0.0)
  • new price = price × (1 + increase)
  • contribution = (price − unit cost) × units
  • break-even volume loss = 1 − old unit contribution ÷ new unit contribution
  • Expected volume loss is your assumption; a staged test or a new-customer-only price measures it.

Continuing carries these exact inputs and results into Business Ontology — 3 free runs, no account needed.