Price Elasticity Calculator
Enter your current price, sales volume, and estimated elasticity to see how a price change would affect your revenue. Adjust the elasticity slider to model different price-sensitivity scenarios.
How to Use This Calculator
What is price elasticity?
Price elasticity (ε) measures how demand responds to price changes. ε = -1.0 means a 10% price increase causes a 10% demand decrease. ε = -0.5 means demand barely changes with price (inelastic). Most digital products fall between -0.5 and -1.5.
Where does my elasticity estimate come from?
If you don't know your elasticity, start with -1.0 (the standard assumption). To get a data-driven estimate, connect your Stripe or Gumroad account to PricingSim — the Bayesian engine estimates elasticity from your actual transaction history.
What does break-even demand mean?
The break-even demand is the minimum number of sales you need at the new price to match your current revenue. If projected demand stays above this number, the price increase helps you. If it falls below, it hurts.
Why is this different from a real experiment?
This calculator gives a point estimate — one number based on a single elasticity value. Real buyer behavior has uncertainty. PricingSim's Bayesian engine produces a full probability distribution: p05, p50, p95 outcomes, so you understand the range of possible results.
Elasticity Reference by Product Type
| Product Type | Typical ε Range | Notes |
|---|---|---|
| Digital templates (Notion, Figma) | -0.5 to -0.9 | High intent buyers, inelastic |
| Online courses | -0.7 to -1.2 | Varies with perceived instructor authority |
| Micro-SaaS tools | -0.6 to -1.0 | B2B buyers less price-sensitive |
| E-books / PDF guides | -1.0 to -1.8 | More elastic; perceived as commodity |
| Code templates / components | -0.5 to -0.8 | Developer tools tend to be inelastic |
| Coaching / consulting | -0.3 to -0.7 | Very inelastic; price signals quality |
These are general ranges. Your actual elasticity depends on your specific audience, positioning, and competition. Use PricingSim to estimate it from your own data.
Want Bayesian estimates from your real data?
This calculator uses a single elasticity estimate. PricingSim computes a full probability distribution from your Stripe, Gumroad, or Shopify transaction history — with a 5th-percentile downside floor so you know the worst-case scenario.
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