What happens to profit if you change the price?
Enter one month of revenue and costs, then move the price and the volume. You see operating profit before and after, and how much volume the new price can lose and still pay off.
- Time
- 3 min
- You need
- Monthly revenue, variable and fixed costs
- Sign-up
- Not needed
- Status
- Works now
- Version
- 1.0 · 27.09.2026
Operating profit for the month
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Change in operating profit: price +2%, volume 0%
- Scenario revenue
- €510,000
- Scenario variable costs
- €440,000
- Break-even revenue now
- €375,000
- Volume the new price can lose and still pay off
- −14.3%
Check the assumption behind the scenario: how will customers react, and which group can you test it on first?
Operating profit = revenue − variable costs − fixed costs.
Price, volume and profit · RND.energy Date: 2026-10-27 Revenue per month: €500,000 Variable costs: €440,000 Fixed costs: €45,000 Operating profit now: €15,000 (3% of revenue) Scenario: price +2%, volume 0% → €25,000 Scenario revenue: €510,000 Scenario variable costs: €440,000 Break-even revenue now: €375,000 Volume the new price can lose and still pay off: −14.3% Formula: profit = revenue − variable − fixed costs. Variable costs move with volume; fixed costs do not. Taxes, interest, depreciation and payment timing are not included.
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About the calculation
- What we calculate
- Operating profit for the month now and in the scenario: revenue minus variable minus fixed costs. And how much volume can leave while a price rise still pays off.
- Assumptions
- Variable costs move with volume, fixed costs stay. The price changes revenue only; the cost of each job stays the same. Costs that grow with the contract value, such as bank guarantees and insurance, are not recalculated: after a price rise they take part of the gain.
- What the result means
- The difference is how much profit the scenario adds or takes away in a month. The volume limit depends on the contribution share of revenue: the higher it is, the less work you can lose.
- What to check next
- How clients will actually react. Try the new markup on private tenders or with one client first.
How to read the result
The teaching example is a month of a made-up general contractor: revenue €500,000, variable costs €440,000 (subcontractors, materials, plant), fixed costs €45,000, profit €15,000. Of every €100, €12 is left after the direct costs of the work. A price 2% higher with the same volume gives €25,000, and with volume down 10% it gives €18,000. The new price stops paying off if the volume falls by about 14%.
A thin margin works the other way too. A price 4% lower, roughly the difference between a job at 12% and a job at 8%, pays off only if you win half as much work again.
How many tenders a new price costs you is an assumption here, not a fact. Before changing the markup everywhere, try it on private tenders or with one client.