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Which pricing tier wins?

Enter your numbers below. Get the answer first, then Koala's next move.

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Numbers to enter
Model one price using the actual variable cost, the sales volume you want to test and any overhead you deliberately allocate to this option. Koala does not invent a demand percentage or customer base.

Costs that rise because one more unit is sold. Keep fixed overhead separate below.

Your scenario. MarginKoala does not assume demand from the price alone.

Use a dollar amount only if you intentionally allocate fixed overhead to this product, tier or scenario. Use the same allocation basis when comparing alternatives.

Koala's Calculated Result
Contribution and profit for exactly the price, volume and overhead scenario entered.

Enter the numbers you know

The detailed explanation will appear here once the calculator has a result.

Add a price, variable cost and the number of units you want to model.

Koala's Professional Opinion

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Definition and method

What this calculator answers

Per-tier profit at expected demand and overhead share — the right metric for picking the right tier to lead with.

Per-tier profit

Per-tier profit = (price − variable cost) × units − overhead. Each tier's profit at expected demand and overhead share — the right metric for picking the right tier to lead with.

Worked example: your figures

The interactive result above is the worked example. Change any input and the same deterministic engine recomputes the answer; this page does not insert a generic example business or silently treat example values as a benchmark.

  • No market benchmark or outcome is silently inserted by this page.

What should I check next?

Frequently asked questions

What's the right tier to lead with?

Use the calculator result for the inputs entered and keep any market-response or operating recommendation separate from the deterministic calculation. Support that additional assumption with the business’s own evidence or an explicitly labelled scenario.

Pricing Strategy Worth It

How do I size the three tiers?

Use the calculator result for the inputs entered and keep any market-response or operating recommendation separate from the deterministic calculation. Support that additional assumption with the business’s own evidence or an explicitly labelled scenario.

Pricing Strategy Worth It

What is overhead allocation?

Per-tier overhead share — the slice of fixed cost for the tier. A premium tier may run at lower overhead share than a discount tier; an explicit overhead allocation lets the contribution calculation be honest per tier.

Pricing Strategy Worth It

What's the right metric for comparing tiers?

Profit per tier at expected demand. Per-tier profit = (price − cost − per-sale fee) × units − per-tier overhead. Pick the tier with the highest profit at the expected demand — not the highest per-unit margin.

Pricing Strategy Worth It

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.