Free calculator
Price increase calculator with break-even churn
Work out a new price from a percentage or the percentage between two prices, see how many customers a SaaS price rise can lose before it costs you gross profit, and measure price elasticity from two data points.
Your numbers
Runs in your browser. Nothing you type is sent or stored.
New price
$88
$80 + 10% = $88.
- Difference
- +$8
- Multiply by
- × 1.1
- Change that undoes it
- −9.09%
Quick answer
How do you calculate a price increase?
New price = old price × (1 + increase). A $80 price raised 10% becomes $88. The percentage between two prices is (new − old) ÷ old × 100: $80 to $90 is a 12.5% increase. For a subscription, a rise pays while the share of affected customers you lose stays under (new − old) ÷ (new − cost to serve): $50 to $60 at an 80% margin can lose 20%.
How to use the price increase calculator
- Pick a mode
New price applies a percentage, % change compares two prices, SaaS impact tests a subscription price rise, Elasticity reads demand from two price points.
- Enter your numbers
Prices before tax. For SaaS impact, use monthly prices, your gross margin and the share of customers who keep the old price.
- Read the result
See the new price or the change, or the MRR and gross profit effect with the churn you can afford.
- Share it
Copy the link to send the exact numbers to your team. Nothing is stored on our side.
How the calculator works
A percentage change applies to the price you start from, so a rise and the cut that undoes it are different sizes. $80 up 25% is $100; $100 down 25% is $75. To get back from $100 to $80 takes a 20% cut.
The SaaS mode holds the cost of serving a customer fixed when the price moves: cost = old price × (1 − gross margin). Grandfathered customers keep the old price and do not leave because of the change. Gross profit stays flat while the share of affected customers who stay is at least (old price − cost) ÷ (new price − cost); one minus that is the break-even churn.
Break-even churn for gross profit is higher than for MRR, because every customer who leaves also stops costing you money. That is why a price rise can lower MRR and still raise gross profit.
Price elasticity uses the midpoint method: the percent change in quantity divided by the percent change in price, each measured against the average of the two values, so the answer is the same in both directions. Above 1 (ignoring the minus sign) demand is elastic; below 1 it is inelastic.
New price = old price × (1 + change)
Change = (new − old) ÷ old × 100
Cost per customer = old price × (1 − gross margin)
Break-even churn = 1 − (old − cost) ÷ (new − cost)
Elasticity = %Δ quantity ÷ %Δ price (midpoint)Worked example
- 1,000 customers pay $50 a month at an 80% gross margin: each costs $50 × 0.20 = $10 to serve.
- Raise to $60. Gross profit per customer goes from $40 to $50.
- Break-even: ($50 − $10) ÷ ($60 − $10) = 0.80 must stay, so you can lose 20% of affected customers.
- Keep 200 customers on $50 and lose 5% of the other 800 (40): MRR is 200 × $50 + 760 × $60 = $55,600, up $5,600.
- Gross profit is 200 × $40 + 760 × $50 = $46,000 a month, up $6,000 from $40,000.
Why the break-even churn is higher than you think
Founders often fear that a 20% rise needs nobody to leave. The maths says otherwise. At an 80% gross margin, a $50 to $60 rise keeps gross profit flat even if 20% of affected customers cancel, because each one who leaves also takes their $10 serving cost with them. The thinner your margin, the less churn a rise can absorb, so AI products with high serving costs should run the numbers before they reprice.
Grandfathering: who keeps the old price
Grandfathering keeps existing customers on the old price, for good or for a set period, and applies the new price to new signups. It lowers the churn risk but also the gain: grandfathered customers add nothing to the increase. The calculator shows both effects, so you can compare raising everyone now with raising new customers only.
Reading price elasticity
| Elasticity (ignoring the sign) | Demand is | A price rise |
|---|---|---|
| 0 | Perfectly inelastic | Raises revenue by the full increase |
| Between 0 and 1 | Inelastic | Raises revenue |
| 1 | Unit elastic | Leaves revenue about the same |
| Above 1 | Elastic | Lowers revenue |
Price increase questions
- How do I calculate a percentage price increase?
- Subtract the old price from the new one, divide by the old price and multiply by 100. $80 to $90 is $10 ÷ $80 = 12.5%.
- How do I add a percentage to a price?
- Multiply the price by 1 plus the percentage. A 15% rise on $40 is $40 × 1.15 = $46.
- Does a 10% increase and a 10% decrease cancel out?
- No. $100 up 10% is $110, and $110 down 10% is $99. The cut applies to the larger number. Undoing a 10% rise takes a 9.09% cut.
- How many customers can I lose after a price increase?
- Divide the price rise by the new price minus your cost to serve one customer. From $50 to $60 with a $10 cost to serve: $10 ÷ $50 = 20% of the customers who get the new price.
- Should I grandfather existing customers?
- Grandfathering lowers churn risk but gives up the increase on those customers. Run both cases in the SaaS mode: if your expected churn sits well below the break-even churn, raising everyone earns more.
- What is price elasticity of demand?
- How much the quantity sold changes when the price changes: percent change in quantity divided by percent change in price. Above 1, ignoring the sign, sales react strongly and revenue falls when the price rises.
- What is the midpoint formula for elasticity?
- Measure each change against the average of the two values: (Q2 − Q1) ÷ ((Q1 + Q2) ÷ 2), divided by (P2 − P1) ÷ ((P1 + P2) ÷ 2). It gives the same answer whichever price you start from.
- How do I raise SaaS prices without losing customers?
- Give notice, explain what improved, keep a cheaper plan for price-sensitive customers and consider grandfathering for a period. Then check the actual churn against the break-even churn from this calculator.
Cite this tool
Free to link and quote. Use this reference:
SaaSCity, "Price Increase Calculator", October 27, 2026. https://saascity.io/free-tools/price-increase-calculator