Result
Profit after the change
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Profit before the change = (price − variable cost) × volume − fixed costs. Profit after the change uses the same formula with a new volume = current volume × (1 + volume change ÷ 100). Price and variable cost per unit are assumed unchanged in this calculation.
Because fixed costs don't grow along with sales volume, the profit change is usually disproportionately larger than the volume change — by exactly how much is shown by operating leverage (DOL): percentage profit change ≈ DOL × percentage volume change. The higher the share of fixed costs, the stronger this effect.
The calculation doesn't check production constraints: if higher volume requires expanding capacity, fixed costs may jump in practice, and the formula stops being accurate beyond current production capacity.