Find out how sensitive your sales are to price.

Price elasticity of demand measures how much the quantity you sell changes when you change price. It's calculated as the percentage change in units divided by the percentage change in price. If the result's magnitude is above 1, demand is 'elastic' — volume reacts strongly to price, so raising prices can lose more sales than it's worth. Below 1, demand is 'inelastic' — volume barely moves, so you likely have room to raise prices and grow revenue. It turns a gut feeling about price sensitivity into a number you can act on.

The most reliable way is with real data from two points where only the price meaningfully differed — a past price change, a test, or two comparable periods — recording the units sold and the price at each. Feeding those into the elasticity formula gives your actual sensitivity rather than a textbook assumption. The main caution is that other factors (seasonality, promotions, competitor moves) can muddy the comparison, so the cleaner the two points, the more trustworthy the result. The model helps you run the calculation and translate it into a revenue impact.

A ready-to-use spreadsheet (Excel & Google Sheets): price elasticity from your price-and-volume data, with the revenue impact of price changes modelled — delivered instantly after checkout. AI-assisted, human-built; not financial advice.