How-to guide

How to use the Price-Increase Simulator

A price rise almost always wins. Even if some customers leave. This shows how many you can afford to lose. Here's how, with three examples.

Watch it work · 30 seconds

Founders under-price because they fear churn. This shows the surprising math: how many customers you can lose on a price rise and still make more money.

What this tool does

You enter your current price, the proposed increase, and your margin; it calculates the break-even churn. The share of customers you can lose and still come out even or ahead.

Who it's for

Founders considering a price rise who want the math before the nerves.

How to use it. Step by step

  1. Enter current price and margin. Your starting point.
  2. Enter the proposed rise. The new price you're considering.
  3. Read break-even churn. The share of customers you can lose and still win.
  4. Compare to expected churn. If real churn is below break-even, raise the price.

How to read your result

The higher your margin, the more customers you can afford to lose. Often far more than founders fear. If expected churn is below the break-even churn, the increase is a clear win.

Worked examples

The same tool behaves differently depending on what you put in. Here are 3 situations.

10% rise, healthy margin

Inputs: $100 → $110, 70% margin.

What the tool shows: You can lose a meaningful share of customers and still make more.

What to do: Raise it. Expected churn is almost always below break-even.

High-margin SaaS

Inputs: Software with ~85% margin.

What the tool shows: Break-even churn is very high. Pricing power is large.

What to do: Raise confidently; grandfather key accounts if needed.

Low-margin product

Inputs: Thin margin business.

What the tool shows: Break-even churn is lower. Less room, but often still positive.

What to do: Raise carefully and watch retention.

Common questions

Won't I lose customers? Some. But the math usually still wins, which is the point.

Why does margin matter? Higher margin means each retained customer covers more lost ones.

Should I grandfather existing customers? Often yes for goodwill. Model both.

A helpful estimate, not a guarantee. This tool works only off the numbers and assumptions you enter. It can't see your whole picture. Use it to get oriented and pressure-test your thinking, then sanity-check the big calls with an advisor. It isn't financial, tax, or legal advice.