Finance

Price Elasticity of Demand Calculator

Compute price elasticity of demand from an old and new price-quantity pair. The calculator returns PED, labels the result elastic, inelastic, or unit elastic, and shows the revenue impact.

How to use
  1. Enter the initial price and quantity.
  2. Enter the new price and quantity.
  3. Pick the elasticity method if offered.
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Price elasticity of demand (PED)
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Estimates for general information, not financial advice. Confirm figures before making money decisions.
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How it's calculated

PED = %ΔQ ÷ %ΔP (midpoint %Δ = (new − old) ÷ ((old + new) ÷ 2) × 100)

PED = price elasticity of demand, %ΔQ = percent change in quantity, %ΔP = percent change in price. Midpoint (arc) method averages old and new values; |PED| > 1 elastic, < 1 inelastic.

Common questions

What does elastic demand mean?

Demand is elastic when a PED above 1 shows quantity changing more than price, so buyers are sensitive to price moves.

How does elasticity affect revenue?

If demand is elastic, raising the price lowers total revenue, while with inelastic demand a price increase raises revenue.

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