Price Elasticity Calculator — Methodology

Step-by-step calculation

Measure elasticity from sales data, or assume a value, then see revenue impact at multiple price-hike scenarios.

1. 1

   Pick a mode

   Measured if you have before/after data; assumed if you're planning hypothetically.

2. 2

   Enter the data or assumption

   Measured mode needs current + new price and units. Assumed mode needs elasticity coefficient and baseline revenue.

3. 3

   Read the revenue impact table

   Shows what happens to total revenue at +5%, +10%, +20% price hikes.

Assumptions and overrides

Uses the arc (midpoint) elasticity formula for measured mode — more accurate than the point-elasticity formula across larger price changes. Assumes constant elasticity across the price range — real demand curves bend, so don't extrapolate beyond modest hikes (15-20%).

Every region default on the calculator is editable. If your effective rate, fee, or threshold differs from the headline figure shown, type your own number into the field — the calculator recomputes instantly without leaving this page.

Review cadence and corrections

This methodology and the underlying rate defaults are reviewed at least annually, and immediately following any change to the headline rate from IRS, HMRC, or SARS. Every substantive update is recorded on the public changelog. Spotted an error? See the corrections policy for how to report it.

See the full editorial policy for the standards every page on BusCalcTools is held to.