B/Billable Toolkit
Free calculators for freelancers & small businesses
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Price Increase Calculator

Thinking of raising your prices? Enter today's numbers and the rise you have in mind. You will see the extra profit, and how many sales you could lose and still come out even.

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Materials, subcontractors, fees. Use 0 for pure time-based work
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Effect of the increase

How it’s calculated

Your profit per sale is the price minus the cost of delivering it. A price rise adds the full increase to that profit, so you can afford to lose some sales and still make the same total. The calculator divides today's total profit by the new profit per sale to find that break-even number.

profit per sale = price − cost new profit per sale = price × (1 + increase) − cost sales needed to match = (sales × profit per sale) ÷ new profit per sale sales you can lose = sales − sales needed to match

Worked example

Selling 200 jobs a month at $100 that each cost $60 to deliver makes $8,000 profit. A 10% rise to $110 lifts profit per job from $40 to $50, so keeping every client earns $10,000, $2,000 more. You could lose 40 clients (20%) and still make the same $8,000.

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Questions

How much should I raise my prices?

Many small businesses raise prices by 5–10% at a time, often once a year. Give existing clients notice, and tie the rise to the value or costs you can point to.

Why can I lose customers and still earn more?

Each remaining sale carries the whole price increase as extra profit. As long as the sales you keep make up for the profit of the ones you lose, total profit stays the same or rises.

Doing these numbers every month? Accounting software can automate invoices, reminders and tax reports.

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