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A practical pricing tool

What happens if you change your price?

Fewer sales do not always mean less revenue. Compare two prices, see the trade-off, and know what to test next.

Choose your evidence

These are assumptions, not a forecast. You choose the sales volume; the calculator does not predict it.

Use one offer, the same unit and periods of equal length. Enter net prices after discounts, excluding tax, in the same currency.

Before
After · Assumed

The same unit cost is used before and after. Leave blank to compare revenue only.

See the result ↓

Your comparison

Scenario · not a prediction
Revenue
BeforeKWD 1,000
AfterKWD 1,080
+8%Change in revenue+KWD 80
Price change+20%Volume change-10%

Changes above are relative to the “before” figures. Elasticity below uses midpoint changes.

Keep the same revenue

At the new price, you need at least

84 whole units / bookings

Exact threshold: 83.3333

Maximum volume decrease: 16.67%

This preserves revenue only. It is not a profit break-even point.

Price elasticity

0.58Magnitude · midpoint method

Less responsive in this comparison

Volume changes proportionally less than price. This describes these two points, not every future price.

The figures stay in this browser tab. They are not included in page sharing or sent with the PDF request.

Turn the number into a next step

Try a lower sales-volume assumption as well. Before changing your price, speak to the right customer segment about value and willingness to pay, then test with a defined offer and review date.

Keep the worksheet

A bilingual guide with a worked example, a blank worksheet and a simple explanation of the result.

PDF · 4 pages · Arabic + English

Your price elasticity guide.

A worked example, a blank worksheet and a guide to the result. Arabic first, then English.

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How the calculation works

P is price; Q is volume. 1 means before, 2 means after. The result is shown as a magnitude when price and volume move in opposite directions.

E = [(Q₂ − Q₁) / ((Q₁ + Q₂) / 2)]
÷ [(P₂ − P₁) / ((P₁ + P₂) / 2)]

Actual results can also change with advertising, seasonality, product changes or customer mix. Subscription growth is not the same as retention. This is a two-point comparison, not a causal estimate or an optimal-price recommendation.

Formula reference: OpenStax, Principles of Economics 3e, §5.1 ↗