Free Tool · The Fastest Lever to EBITDA

What would a price increase do to your profit?

Price is the highest-leverage move in your business — a small increase drops almost straight to EBITDA. See the profit and enterprise-value impact of your next price move, and exactly how much volume you could lose before it stops paying.

Your Numbers

Tell us about your business

A directional model of how a price change flows to profit. Nothing is stored on this page.

Annual Revenue?Your total top-line sales over the last 12 months.

Current EBITDA?Your annual operating profit (EBITDA). Used to show the percent lift a price increase produces.

Gross margin?Revenue minus the direct (variable) cost of delivering your product or service, as a % of revenue. This is the share of each new price dollar that flows to profit. 40%

Proposed price increase?The across-the-board price increase you're considering. Most disciplined increases land between 2% and 8%. 3%

Expected volume loss?Your best estimate of how much unit volume you'd lose from the increase. In practice it's often far less than feared — many firms lose almost none. 2%

EBITDA multiple (for enterprise-value impact)?The EV/EBITDA multiple buyers in your industry pay. Every extra dollar of durable EBITDA is worth this multiple in enterprise value. Use ~5–8x if unsure.

Please enter a valid revenue and EBITDA to continue.

Frequently Asked Questions

How is my business valuation calculated?

It uses the EBITDA-multiple method: your adjusted EBITDA multiplied by a current M&A multiple for your industry, size, and growth, producing an enterprise-value range. It is a directional estimate, not a formal valuation.

What is a good EBITDA multiple for a middle-market company?

Multiples vary widely by industry, typically from about 4× to 10× or more of EBITDA. They rise with size, growth, recurring revenue, and lower customer concentration. The calculator applies a range appropriate to your inputs

Is the business valuation calculator free?

Yes. Enter your numbers to see your estimated enterprise value, implied EBITDA multiple, and value gap in about 60 seconds.

What is the difference between EBITDA and enterprise value?

EBITDA is your annual operating profit. Enterprise value is roughly that EBITDA multiplied by a market multiple — what a buyer would pay for the business.

Why pricing is the fastest lever to profit

Of every lever a CEO can pull — volume, cost, or price — price is the most powerful. A price increase carries almost no added cost, so it falls nearly straight to EBITDA. A 3% increase on a business with healthy margins can lift operating profit by double digits, and because enterprise value is a multiple of EBITDA, the gain compounds into the value of the company itself.

The fear is always volume loss. The Price Increase Calculator quantifies it precisely: enter your revenue, EBITDA, gross margin, and the increase you're weighing, and it shows the EBITDA and enterprise-value impact — plus your breakeven volume loss, the exact amount of volume you could lose before the increase stops paying. In most middle-market businesses that breakeven is far higher than owners expect, which is why disciplined pricing is the lowest-risk margin available.

How to capture it without losing your best customers

The goal isn't a blunt across-the-board hike. It's pricing to value: segment customers and products by the value you deliver and their price sensitivity, move first on your weakest-priced accounts, and build increases into contract terms so they happen on a cadence. That's the core of the Profitable Growth Operating System (PGOS) we run with private equity portfolio companies and middle-market CEOs.

Book a call to build your pricing move — or try the Business Valuation Calculator, the Profitable Growth Scorecard, and the Profit Concentration Analyzer.

The 80/20 Institute helps organizations achieve rapid, measurable financial results by embedding 80/20 thinking deep into their operations and culture.

Our methodology equips companies to achieve sustainable improvements in revenue, margin, and EBITDA.

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