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Price Elasticity of Demand Calculator

Compare two price and quantity observations using symmetric midpoint percentage changes.

Use a consistent reporting periodCheck the calculation below
Business dashboard
Business dashboard

Use figures from the same reporting period.

See the method

Enter your business figures

Runs on your device

Your key metric

Your result

Let’s calculate.

Use the Calculate button to see your result.

Review the method below for assumptions and conventions.

How to use this tool

  1. Enter initial price, new price, initial quantity, new quantity.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

Midpoint elasticity = [(Q2−Q1)/((Q1+Q2)/2)] / [(P2−P1)/((P1+P2)/2)]. Classification uses the absolute magnitude.

A WORKED EXAMPLE

Using initial price = 10, new price = 12, initial quantity = 100, new quantity = 80, the result is -1.22222222. Change these example inputs to match your task; use the method above to check each step.

Understanding your result

Midpoint changes use the average of the two observations as the denominator, so reversing the starting and ending observations produces the same elasticity.

What to keep in mind

Two observations cannot establish causation. Changes in season, promotion, availability and competitors can affect demand. Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.

Common questions

Why use the midpoint method?

Midpoint changes use the average of the two observations as the denominator, so reversing the starting and ending observations produces the same elasticity.

Are business inputs stored?

This tool calculates locally in your browser. It does not upload your figures or connect to your business accounts.

Methodology maintained by ClarityKit. How these tools are built and checked.