METHOD & GUIDANCE
How this calculation works
Keep every input on the same time basis—for example, one month or one financial year—and do not mix cash figures with accrual figures. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Compare a realistic customer-loss case with the profit-neutral volume threshold. Keep price, variable cost, sales volume and fixed costs on the same period basis.
Worked example
At a £50 price, £25 variable cost and 1,000 sales, a 10% increase lifts price to £55. Even if volume falls 5% to 950 units, the opening example increases period profit.
Common mistakes
- Assuming every customer reacts identically.
- Using revenue change instead of contribution and profit.
- Ignoring contracts, notice periods, competitor responses or VAT-inclusive customer pricing.
Frequently asked questions
Is the price increase calculator free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Should I include sales tax in revenue and cost figures?
Use a consistent basis throughout. Businesses that recover input tax commonly model net figures; customer-facing prices may need to be considered sales tax-inclusive.
Continue the decision
- Target Pricing Calculator — Find the price needed to achieve a target margin.
- Profit Margin Calculator — See profit, margin and markup from one sale.
- Break-even Revenue Calculator — Find break-even sales revenue from fixed costs and gross margin.
Popular small-business decision paths
- Set a price from cost and target margin
- Check profit and margin per sale
- Find the sales volume needed to break even
Method reviewed 5 August 2026. Figures are illustrative and calculated locally in your browser. Official sources are linked where a rule or obligation affects how the result should be used. Read the Tool IQ calculation standard for our checking process, limitations and corrections policy.