Price Elasticity Calculator
The midpoint method compares percentage changes in quantity and price to estimate demand price elasticity.
How to use this calculator
- Enter comparable before/after prices and quantities for the same product and time convention.
- Check the labels and units before using a result outside this page.
- Change one input at a time if you want to compare scenarios.
Formula and method
Elasticity = ((Q₂ − Q₁)/average Q) ÷ ((P₂ − P₁)/average P)
- Elasticity = ((Q₂ − Q₁)/average Q) ÷ ((P₂ − P₁)/average P)
- The ratio alone does not demonstrate that price caused a quantity change; promotions, seasonality and other factors may be involved.
Worked examples
Worked example
Price changes from 10 to 12 and quantity changes from 100 to 80.
Midpoint price change is about 18.18%, quantity change about −22.22%, elasticity about −1.22.
Midpoint price change is about 18.18%, quantity change about −22.22%, elasticity about −1.22.
Understanding the result
The midpoint method compares percentage changes in quantity and price to estimate demand price elasticity.
The ratio alone does not demonstrate that price caused a quantity change; promotions, seasonality and other factors may be involved.
Important notes
The ratio alone does not demonstrate that price caused a quantity change; promotions, seasonality and other factors may be involved.
Displayed outputs are rounded for readability; preserve full precision when continuing a calculation.
Frequently asked questions
What does this price elasticity calculator show?
The midpoint method compares percentage changes in quantity and price to estimate demand price elasticity.
Which inputs should I check first?
Enter comparable before/after prices and quantities for the same product and time convention.
Can the result be used as a final professional specification?
The ratio alone does not demonstrate that price caused a quantity change; promotions, seasonality and other factors may be involved.
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Related explanations
Learn the method behind the number or compare the terminology before using the calculator.
- How to Calculate Break-Even Point — Learn the break-even formula for units and revenue and understand fixed costs, price, and variable costs.
- How to Calculate Sales Tax — Learn the sales tax formula, pre-tax vs total price, and how to reverse a tax-inclusive price.
- Markup — Learn what markup means, how markup is calculated from cost and selling price, and how it differs from margin.
This page provides a calculation tool plus explanatory information so you can understand what the result means and when the underlying method may not fit your situation.