Result
Profit sensitivity to price
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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
Sensitivity (profit elasticity to price) = (price × volume) ÷ profit. Profit here is (price − variable cost) × volume − fixed costs. The metric answers: if price rises 1%, by roughly what percent does profit rise (at constant sales volume)?
The value is always above 1 at positive profit — price flows fully and directly into revenue, so even a small price change strongly sways the final profit, which is a much smaller amount left after costs are subtracted.
The calculation assumes sales volume doesn't change when price does — in practice, raising price almost always dampens demand (see the demand elasticity calculator), so this is an upper bound on the 'all else equal' effect, not a forecast accounting for buyer reaction.