Price-rise calculator

Why a small price rise matters so much

When you raise a price, your direct costs don't change, so every extra dollar lands in gross profit. That's why a modest increase can lift profit per sale by far more than the headline percentage. On a $200 sale with $120 of direct costs, a 5% rise takes gross profit from $80 to $90 — up 12.5%. The thinner your margin, the bigger this effect.

The calculator turns that into the question owners really ask: how many customers can I afford to lose? The answer is the break-even sales volume — your current gross profit divided by the new gross profit per sale. Sell more than that and the rise has paid off, even if a few price-sensitive customers leave.

How to use the result

Compare the break-even loss with what you realistically expect. If you think you might lose 3% of sales and the calculator says you could lose 11% and still match your profit, the decision is straightforward. If the two are close, consider a smaller rise, a rise only on your most under-priced lines, or adding visible value alongside it. Our guide to raising your prices without losing customers covers timing and the words to use, and how to price your services shows how to find your floor price from real costs.

The same maths works in reverse for discounts, where the numbers are far less forgiving — see the true cost of discounts.

Pricing and funding go together

Owners often lift prices ahead of a growth move — a first hire, a new van, a second site — so the stronger margin helps carry the cost. If that's your plan and you'd like funding lined up behind it, we consider trading businesses for unsecured facilities typically from $5,000 to $500,000 and property-secured loans from $20,000 to $5,000,000. There's no credit check to enquire, we don't pass your details to other lenders, and a real person calls you. Fill in the form accurately and we'll aim to get the match right on the first call — start here.