Pricing Elasticity & Revenue Optimization Simulator

Raising price loses some customers and gains more margin per sale. The profit-maximizing price is rarely the one that maximizes revenue, or the one that feels safest, see exactly where the curve actually peaks.

Reading This Tool

How To Use This Simulator

Enter your current price, quantity sold, price elasticity of demand, and variable cost per unit.

The chart plots profit across a full range of possible prices using a constant-elasticity demand curve, and marks exactly where profit peaks, which is very often not your current price.

Your Inputs

Current Price $50

Current Monthly Quantity Sold 1,000

Price Elasticity Of Demand 1.5

Variable Cost Per Unit $20

Elasticity above 1.0 means demand is "elastic," a price change moves quantity more than proportionally. Below 1.0 means demand is "inelastic," quantity barely responds to price. Most consumer discretionary goods sit above 1.0.

Optimal Price Point

Profit-Maximizing Price

Profit At Current Price

Profit At Optimal Price

Monthly Profit Across A Range Of Prices

This model assumes constant elasticity across the full price range and no competitive response. Real-world demand curves can shift due to competitor pricing, brand positioning, and market conditions this model does not capture.

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