If you raise your price, how much volume can you afford to lose?
A price rise flows almost entirely into gross margin, so you can lose some volume and still come out ahead. This works out how many sales you could lose before you are worse off. Contribution-margin arithmetic only: it does not predict how customers will react.
Questions owners ask
No. It works in gross contribution: your price minus the variable cost of each sale. Fixed costs like rent and salaried wages are left out, so the contribution change only reaches your bottom line if those fixed costs stay the same, which a price change on its own does not move.
No. It shows the break-even threshold: the point where the higher price and a drop in volume exactly cancel out. How many customers actually stay or go depends on your market and your offer, which no formula can know.
Costs that rise with each additional sale: materials or ingredients, card processing fees, sales commissions, and directly variable labour. Rent, salaried wages and software are fixed, so they are not included here.
You cannot sell a fraction of a sale. Rounding the minimum up to the next whole unit keeps you at or above today's gross contribution rather than a hair below it, so the whole-unit maximum loss stays consistent with it.
No. The arithmetic runs entirely in your browser and nothing is sent or saved.
Moonmoot gives business guidance based on the data it can see. It is not financial, legal, tax, or investment advice.