Growth calculator

Pricing Change Impact Calculator

Estimate revenue, gross-profit, demand, break-even volume, and optional lifetime impact from a proposed price change.

Inputs

Defaults are visible and can be changed before calculation.

Inline validation messages appear here when a value needs to be corrected.

Currency *Applies to all revenue, cost, and profit outputs.Current price *Current price per customer or conversion.Proposed price *New price being modeled.Current customers or conversions *Current conversion or customer volume for the modeled period.Expected demand change *Expected percentage change in customers or conversions after the price change. Negative values model demand decline.Variable cost per customer *Per-customer cost directly tied to delivering the product or service.Fixed costsFixed costs allocated to the modeled period. Defaults to 0 when blank.Refund rateShare of customers or conversions expected to refund. Defaults to 0% when blank.Lifetime change from churnExpected percentage change in customer lifetime after the price change. Positive values shorten lifetime in the optional lifetime model.Projection periodsNumber of periods to apply the period-level impact. Defaults to 1.Current conversion rateOptional current conversion rate used to show the implied conversion-rate change. Defaults to 0% when blank.TrafficOptional traffic volume paired with current conversion rate. Defaults to 0 when blank.Customer lifetime periodsOptional lifetime multiplier for lifetime-value impact. Defaults to 1.

Results

Results are deterministic scenario outputs, not guarantees.

Enter values and calculate to see the summary, supporting metrics, warnings, and interpretation.

Interpretation

Deterministic interpretation rules will explain what the modeled result means once a calculation is available.

Detailed breakdown

Intermediate calculation rows will appear here after calculation.

Formula

Current net customers

currentNetCustomers = currentCustomersOrConversions × (1 - refundRate)

Proposed customers

proposedCustomers = currentCustomersOrConversions × (1 + expectedDemandChangeRate) × (1 - refundRate)

Revenue change

revenueChange = proposedCustomers × proposedPrice - currentNetCustomers × currentPrice

Gross-profit change

grossProfitChange = proposedGrossProfit - currentGrossProfit

Maximum tolerable demand decline

maximumDemandDeclineRate = 1 - (breakEvenProposedCustomers / currentCustomersOrConversions)

Assumptions

This is an assumption-driven scenario model, not a forecast or guarantee.
Demand change applies to customer or conversion volume before refund adjustment.
Gross profit uses price minus variable cost per customer and subtracts fixed costs for the modeled period.
Optional lifetime impact applies the entered customer lifetime periods and projection periods to period-level results.

Worked example

Example: price increase with modest demand decline

If price increases from $100 to $120 and demand falls 10% on 1,000 current customers with $40 variable cost, modeled revenue rises by $8,000 and gross profit rises by $12,000 before optional lifetime effects.

FAQ

Does this calculator estimate price elasticity?

No. You enter the expected demand change, and the calculator deterministically models the financial impact of that assumption.

How are refunds handled?

Refunds reduce both current and proposed customer or conversion counts before revenue and gross profit are calculated.

What does maximum tolerable demand decline mean?

It estimates how much demand can fall at the proposed price before modeled gross profit falls below the current scenario.

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Want help interpreting the model?

Use this calculator as a deterministic planning tool, then talk with Propel Collective about which assumptions are worth validating first.

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