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Price Elasticity Calculator
Measure how quantity demanded changed relative to a price change without direction-dependent base effects.
Price Elasticity Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
A price increase from $10 to $12 with quantity falling from 1,000 to 850 produces elasticity of about 0.89.
How this calculation works
The midpoint method divides each change by the average of its starting and ending values, then divides the quantity percentage change by the price percentage change.
How to interpret the result
Above 1 indicates elastic demand; below 1 indicates inelastic demand. Two observations do not isolate causation—seasonality, promotion, distribution, and competitors may also change quantity.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Sources and further reading
Formula and example
A price increase from $10 to $12 with quantity falling from 1,000 to 850 produces elasticity of about 0.89.
Common use cases
- Evaluate a pricing test.
- Estimate demand sensitivity.
- Compare product or segment responses.
Price Elasticity Calculator FAQ
How is price elasticity calculated?
The midpoint method divides each change by the average of its starting and ending values, then divides the quantity percentage change by the price percentage change.
What should I check before using the result?
Above 1 indicates elastic demand; below 1 indicates inelastic demand. Two observations do not isolate causation—seasonality, promotion, distribution, and competitors may also change quantity.
Does this calculator provide financial advice?
No. It applies the stated formula to your inputs for educational planning. Validate definitions, timing, accounting treatment, and assumptions before acting.