Price Increase Calculator

2026 • Entrepreneur Tool

Price Increase Calculator

Calculate in seconds which new price is necessary to maintain your margin despite higher costs/inflation – or how much you need to increase to reach a specific profit goal.

Inputs

Current Selling Price (net)

Current Cost per Unit (COGS/Service)

Example: Material + External services + Direct hourly costs.

Cost Increase (e.g. Supplier, Wage, Energy)

Negative possible (if costs decrease).

Target Margin (Contribution Margin in % of Price)

40% Margin means: 40% of the selling price remains after direct costs.

Mode "Maintain Margin": We calculate the new price so that your target margin remains the same despite rising costs.

Planned Quantity per Month (Units/Hours/Projects)

Profit Goal per Month (Additional CM/Profit)

Mode "Profit Goal": We calculate how much you need to increase to reach your profit goal at your current quantity.

Bundle/Offer Size (e.g. 10 Hours, 3 Items)

Units

Mode "Offer/Bundle": We calculate the new total bundle price plus the price per unit – ideal for Retainers & Bundles.

Note: Results are net. VAT, discounts, and payment terms can be added in your price communication.

Result

New Price (Recommended)

–

Increase

–

New Costs per Unit –

Contribution Margin per Unit –

Margin (after increase) –

Enter your numbers on the left and click Calculate. You will receive a clear recommendation plus reasoning.

FAQ & Explanation

A price increase often feels risky – especially for freelancers and companies who want to retain regular customers. At the same time, rising costs (materials, wages, energy, software, rent) eat up your margin faster than you think. This calculator helps you plan price adjustments based on data: You immediately see which new price is necessary to keep your contribution margin stable – or how to reach a clear profit goal.

How does "Maintain Margin" work? You enter your current selling price and current direct costs per unit. Then you enter how much these costs are increasing (e.g., +8%). Additionally, you define a target margin in percent. The calculator computes the price needed to restore this margin given the new costs. This prevents you from generating the same revenue but ending up with less profit. This is especially relevant for services, retail, and subscription models.

How does "Reach Profit Goal" work? Here, the planned quantity per month is added (e.g., 40 hours, 20 items, or 8 projects). You also specify a profit goal (e.g., +$500 per month). The calculator then determines the additional margin required per unit. This results in a recommended new price. Advantage: You see immediately if the target is realistic or if you need to work on volume, offer packages, or cost structure instead.

What is "Offer / Bundle Price" for? Many freelancers sell retainers, packages, or bundles (e.g., 10 hours/month, 3-month package, maintenance contracts). The calculator shows you the new total package price as well as the price per unit, keeping your offer calculation clean. This helps in conversations when customers ask for an "hourly rate".

Practical Tips for Communication: Do not increase "just because", but justify it briefly: increased costs, higher quality, faster delivery times, or more service. Work with round, market-standard price points (e.g., 99 instead of 97). For existing customers, notice periods (e.g., 30 days) and options ("Standard" vs. "Premium") often work better than a hard cut. And: Test price increases on new customers or new packages first – this reduces psychological pressure.

Is the result gross or net?

The calculation is net. For gross prices, you can add VAT afterwards (e.g., 19% or local rate).

Which "Costs" should I enter?

Direct costs per unit: COGS, external services, materials, variable hourly costs. Fixed costs are covered indirectly via your target margin.

Why is the Target Margin important?

Without a target margin, you often increase prices too little. The margin ensures that you cover fixed costs, risk, and growth.

What if my customers reject the increase?

Use packages, added value, longer terms, or small steps. Alternatively: Adjust the scope of services instead of the price – but calculate carefully.

Can I enter a negative cost increase?

Yes. If costs go down, you can see if you can hold your price or if you have room for better offers.

Embed this Calculator on Your Website

You can integrate this calculator for free into your own website. Get the embed code on our overview page.

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