This calculator models whether a price increase improves profit even after accounting for client losses. It compares your current situation against a post-increase scenario.
Purpose:
This calculator models whether a price increase improves profit even after accounting for client losses. It compares your current situation against a post-increase scenario. Enter your current revenue, client count, variable cost percentage, and fixed costs. Then select a price increase percentage and expected client loss rate. The calculator shows the net profit impact.
Tips for Ongoing Use:
Bookmark this page (Ctrl+D or Cmd+D) for quick access.
- Model before annual price reviews
- Test different increase and churn combinations
- Use to build confidence before difficult pricing conversations
- Revisit assumptions based on actual churn after increases
Understanding Basics:
Price increases often improve profit even with some client loss because you keep most revenue while reducing variable costs from fewer clients. The break-even point depends on your cost structure.
Benefits for SMEs:
- Make price increase decisions based on data
- Understand the real risk of losing clients
- Find the optimal price increase level
- Build confidence for pricing conversations
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