New to this? What these numbers mean and what break-even loss is
You're seeing what a small, well-judged price rise is worth once it drops through to profit and value. Money is in Australian dollars. Plain English below.
- Enter your annual revenue, EBITDA and gross margin %.
- Set the price rise you're weighing and how much volume you'd expect to lose.
- Read what it's worth in extra EBITDA and enterprise value, and the break-even volume loss: how many customers you could lose before the rise stops paying.
- EBITDA
- Roughly your annual operating profit before financing, tax and accounting charges. A price rise costs almost nothing to deliver, so nearly all of it lands here.
- Valuation multiple
- The times-profit a buyer pays: enterprise value is roughly EBITDA times this number, so every extra dollar of EBITDA multiplies.
- Gross margin %
- The share of each sale left after the costs that vary with it. It sets how much a lost sale actually costs you, and so how much volume you can afford to lose.
- Break-even volume loss
- How many customers, or how much volume, you could lose before a price rise stops adding profit. Above this, the lost sales cancel out the higher price.
Your numbers
The business today
The change you're considering
What it's worth
Enterprise value added
From a 3.0% price rise, at 5.0x. Almost all of it drops through to value, because a price rise costs nothing to deliver.
EBITDA uplift
+A$210K
New EBITDA
A$1.61M
Break-even volume loss
You could lose this much volume before the price rise stops paying. Most owners overestimate how many customers actually leave.
A Commercial Assessment tests where you have room to price, by product, customer and channel.
Illustrative and simplified. It assumes your variable costs move with volume and your fixed costs don't, that the price change carries across the book evenly, and that you keep every customer except the volume you enter. Real pricing power varies by product, customer and segment, and the right rise is rarely the same everywhere. Use it to see the leverage, then work out where you actually have room. Not financial advice.
Pricing is the fastest lever most owner-led businesses never pull.
A rise you can defend flows straight to EBITDA and value, with no extra cost to deliver. A Commercial Assessment finds where you have genuine pricing headroom, and where you don't, on your actual numbers.
Start with a Commercial Assessment →Not ready to talk? Find your constraint in 60 seconds →