Price Elasticity Calculator
How much demand moves when price does.
Price elasticity of demand
-1.50
elastic — price-sensitive
Demand is elastic — the volume lost outweighed the price gain. Discounting may work better than raising prices here.
How the Price Elasticity Calculator works
Elasticity measures how sensitive your buyers are to price. Above 1 and a price rise loses more volume than it gains in margin; below 1 and you are almost certainly underpricing. Most sellers never measure it and assume the worst.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How is price elasticity calculated?
Percentage change in quantity ÷ percentage change in price. If a 10% price rise cuts sales 15%, elasticity is −1.5. The sign is almost always negative; the magnitude is what matters.
What is elastic versus inelastic demand?
Above 1 in magnitude is elastic — demand reacts strongly, and price rises reduce revenue. Below 1 is inelastic — demand barely moves, and raising price increases revenue. Exactly 1 means revenue is unchanged.
How do I measure elasticity for my own products?
Change price on one product, hold everything else constant, and compare a few weeks of sales against the period before. It is imperfect, since seasonality and advertising interfere, but far better than guessing.
What makes demand less elastic?
Strong brand, few substitutes, low price relative to income, and urgency. Commodity products with many alternatives are highly elastic, which is why competing on price there is a race nobody wins.