See exactly how a price change impacts your profit margin and how many units you need to break even.
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Start Monitoring Free — 3 Products IncludedProfit margin is the percentage of revenue that remains after subtracting the cost of goods sold (COGS). It tells you how much you actually keep from each sale. A 50% margin means you keep $0.50 of every dollar in revenue.
Formula: Margin = (Price - COGS) / Price × 100
Break-even analysis tells you the minimum number of units you need to sell to cover your costs. At the break-even point, your total revenue equals your total costs — you're not making money, but you're not losing it either.
Formula: Break-Even Units = Fixed Costs / (Price - Variable Cost per Unit)
A small price decrease can require a significant increase in volume to maintain the same profit. For example, a 10% price cut on a product with 30% margin requires a 50% increase in units sold just to break even. This calculator shows you exactly what happens when you adjust your price.
Lower your price when: competitors are consistently undercutting you, your product is elastic (small price changes = big volume changes), you have excess inventory, or you're entering a new market. Use PriceEdge to track when competitors change prices so you can respond strategically, not reactively.
Raise your price when: competitors are out of stock, your reviews/ratings are significantly better, demand is seasonal (holiday periods), or you have exclusive products. PriceEdge monitors competitor inventory so you know exactly when to raise prices.