Price Increase Calculator
The mirror image of a discount: how many customers can you afford to lose when you raise prices?
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How it works
A price rise works the same way a discount does, in reverse. The whole increase falls to profit, so a modest rise on a thin margin can transform the economics — and you can afford to lose a surprising number of customers in the process.
The break-even churn figure is what makes the decision. At a 30% margin, a 10% price rise stays profit-neutral even if you lose a quarter of your volume. Most businesses lose far less than that, which is why under-pricing is a more common error than over-pricing.
Volume you can lose = increase ÷ (margin + increase)
- Increase — the price rise as a percentage of the current price
- Break-even churn — the share of volume you can lose while holding gross profit flat
- Expected churn — what you actually think will leave
Worked example
1,000 units at 500, costing 350, raising the price 10% and expecting 5% churn
Inputs
Results
You can lose a quarter of your customers and break even. Losing the 5% you expect leaves you 40,000 ahead — a 27% profit gain.
Frequently asked questions
How much churn should I expect from a price rise?
Far less than most teams fear, particularly for a rise under 10% communicated with notice. The number that matters is how it compares against the break-even figure — and the gap is usually wide.
Should I raise prices for existing customers too?
Grandfathering existing customers removes almost all the churn risk but also most of the gain, since the increase only applies to new business. A middle path — raising existing prices with long notice — usually captures most of the benefit.
Why does a low margin make a price rise so powerful?
Because the increase is measured against price but lands entirely on profit. On a 10% margin, a 10% price rise doubles the profit per unit, and the break-even churn is 50%.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Nothing you type is transmitted to us or stored.
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