Price Elasticity of Demand Calculator
Measure how sensitive your customers are to price with the price elasticity of demand. Enter old and new prices and quantities to get the elasticity — elastic (>1) or inelastic (<1).
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Learn moreElastic vs inelastic demand
Price elasticity of demand measures how much quantity sold changes when price changes. Above 1 (elastic), buyers are price-sensitive and a price rise cuts revenue; below 1 (inelastic), demand barely moves and a price rise raises revenue. We use the midpoint method so the elasticity is the same whether price goes up or down.
How it’s calculated & sources
Elasticity = (% change in quantity) ÷ (% change in price), using the midpoint (arc) method: change divided by the average of the two values. Reported as an absolute value; >1 elastic, <1 inelastic.
Benchmark: the elastic/inelastic threshold of 1.0 — above 1 demand is price-sensitive, below 1 it is not (standard microeconomics).
Results update as you type and are general estimates, not personalized advice. Verify with a professional.
Worked example
Raising price from $10 to $12 while sales fall from 1,000 to 800 gives ~−22.2% quantity over ~18.2% price — an elasticity of about 1.22, so demand is elastic.
Frequently asked questions
Why use the midpoint method?
It gives the same elasticity whether you move from the low or high price, avoiding the bias of picking one base.
What does elastic mean for pricing?
If demand is elastic (>1), raising price lowers total revenue; if inelastic (<1), raising price increases revenue.
Can elasticity be negative?
Demand elasticity is technically negative (price up, quantity down); it is almost always reported as an absolute value.