Price Elasticity of Demand Calculator
Find the price elasticity of demand by the midpoint method, whether demand is elastic, and how revenue changes.
Change the values and press Calculate to work out your own figures.
Enter the two prices and quantities demanded.
Show the working
- %Δ = (new − old) ÷ ((new + old) ÷ 2)
- elasticity = %Δ quantity ÷ %Δ price
How to use it
Enter the two prices and quantities demanded.
Enter amounts without commas or with them; rates are percentages (5 for 5%). Negative amounts are allowed where a sign means money paid out.
Key facts
elasticity = %Δ quantity ÷ %Δ price midpoint %Δ = (new − old) ÷ ((new + old) ÷ 2)
Reading it
Beyond −1 demand is elastic (revenue falls when price rises); between −1 and 0 it is inelastic.
Questions
Is demand elastic if a price rise from $10 to $12 cuts sales from 100 to 60?
Yes: −2.75.
Formulas
elasticity = %Δ quantity ÷ %Δ price midpoint %Δ = (new − old) ÷ ((new + old) ÷ 2)
Sources
Limitations
- Results are estimates for planning, not offers or financial advice; lenders and banks may round, count days or time payments differently.
- Rates are nominal annual rates compounded as you choose; payments at a different frequency use the equivalent periodic rate.