Result
Profit sensitivity to volume
—
Your inputs are stored in this browser, so everything is still here next time. Nothing is sent to a server.
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 = contribution margin (price − variable cost) × volume ÷ profit. This is the exact same number as operating leverage (DOL) — just framed differently: not as a 'leverage' but directly as how many percent profit rises for a 1% rise in sales. If you've already computed DOL for the same data, there's no need to recompute — the value is identical.
The higher the share of fixed costs in the cost structure, the higher this sensitivity: fixed costs don't grow with volume, so the entire increase in contribution margin from extra sales flows straight into profit, amplifying the effect.
Like operating leverage, the metric works both ways — it amplifies profit growth and profit decline equally when volume changes, so high sensitivity increases both the growth potential and the risk if sales fall.