Finance Tools
Price Increase vs Volume Drop Break-Even Calculator
Calculate how much sales volume can drop after a price increase while keeping total gross profit (or contribution profit) the same.
Estimate the maximum volume drop you can tolerate after a price increase while keeping total profit the same.
Your current selling price.
Variable cost per unit (COGS / variable inputs). Fixed costs are not included here.
Units sold in your baseline period.
Example: 10 means +10% price.
Calculated from the baseline price.
Break-even volume
Break-even units after price change: 8,000
Volume change (units): -2,000
Max volume drop allowed
Max drop (units): 2,000
Max drop (%): 20.00%
Revenue (for context)
Baseline revenue: $1,000,000
Revenue at break-even units: $880,000
This tool holds profit constant, not revenue.
This is a profit break-even calculation: it tells you how much volume can fall while keeping total profit constant.
How it works
- Baseline total profit = (price − variable cost) × baseline units.
- New unit profit = (new price − variable cost).
- Break-even units = baseline total profit ÷ new unit profit.
- Max volume drop = baseline units − break-even units.
FAQ
Does this model fixed costs?
Not directly. You can approximate by adding fixed costs into “profit required” (future extension).
What if variable cost also changes?
Update the unit variable cost input to the post-change value.
How to use this price increase vs volume drop break-even calculator
- Enter your current price, unit variable cost, and baseline units sold.
- Enter your planned price increase (%).
- Choose what you want to hold constant: total gross profit or contribution profit (same here when using variable cost).
- See the maximum volume drop allowed and the break-even units after the price change.
Example
Price is $100, variable cost is $60, and you sell 10,000 units. You plan a 10% price increase.
- Old unit profit = 100 − 60 = 40
- New price = 110, new unit profit = 110 − 60 = 50
- Profit must stay same: 40×10,000 = 50×newUnits → newUnits = 8,000
- Max volume drop = (10,000−8,000)/10,000 = 20%
More tools in Finance Tools
- Unit Cost Increase Break-Even Yield Calculator
Estimate how many additional units you must produce or sell to break even after a unit cost increase (assuming selling price stays the same).
- Required Volume Increase to Offset Cost Inflation Calculator
Calculate how much sales volume must increase to offset higher input costs and maintain the same total profit when prices cannot be raised.
- Material Cost Break-Even Shift Calculator
Estimate how a change in material costs shifts your break-even volume and break-even revenue using fixed costs, selling price, and unit costs.
- Cost Inflation Break-Even Price Calculator
Calculate the break-even selling price needed to offset cost inflation and keep profit at zero (no loss).