Optimal Price Finder
Automated solver that finds the exact price point to maximize Profit or Revenue based on your cost structure and market elasticity.
Market Inputs
Optimization Curves
Execution Steps
Input your current Base Price and Sales Volume.
Enter your Variable Cost per unit (COGS).
Input your estimated Price Elasticity (e.g. -1.5).
The chart identifies two critical peaks: The Revenue Maximizing Price and the Profit Maximizing Price.
Pro Strategy
- Notice that Max Profit Price is almost always higher than Max Revenue Price.
- If you are a startup chasing growth/valuation, aim for the Revenue Peak.
- If you are a mature business maximizing cash flow, aim for the Profit Peak.
Core Concepts
Profit Maximization Rule
Profit is maximized when Marginal Revenue equals Marginal Cost (MR = MC). This usually occurs at a higher price than revenue maximization.
Revenue Peak
The price point that generates the most top-line sales. Pricing here captures market share but sacrifices margin.
Elasticity Curve
The steeper the elasticity (more negative), the lower your optimal price will be, as customers flee from price hikes.
Downloadable Resources
No templates available for this tool yet.