In this example, increasing current price from 100 to 110 changes the result from 20,900 per month to 22,990 per month. All other inputs stay the same.
Try this with your own numbersFormula and worked example
New revenue = price × (1 + increase) × volume × (1 − volume loss)
| Input | Example |
|---|---|
| Current price | 100 |
| Price increase | 10 % |
| Current monthly sales | 200 |
| Expected sales volume loss | 5 % |
| Calculated result | 20,900 per month |
Baseline revenue: 20000
Choose reliable inputs
Separate parts, technician time and bay availability for each repair order. For this auto repair calculation, use repair orders, parts invoices and technician time logs and a consistent definition of one repair order.
- Parts: include the portion belonging to this repair order or reporting period, and record where the value came from.
- Technician time: include the portion belonging to this repair order or reporting period, and record where the value came from.
- Shop overhead: include the portion belonging to this repair order or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
Does raising prices always raise revenue?
A sufficient volume decline can offset the higher price. Compare contribution as well as revenue before deciding.
Volume loss is your assumption, not a demand forecast; costs are excluded.
What if this input changes?
If current price rises by 10%, this example changes by 2,090 per month. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.