Dynamic Pricing Calculator

Any number you use to represent relative demand — search volume, bookings, inventory turnover, whatever metric fits your business. Only the ratio between your current and average index matters to the formula.

To prevent extreme swings (e.g. a demand spike doubling your price overnight) that could feel unfair to customers or trigger backlash — the cap limits how far the price can move up or down from your base price regardless of how large the raw demand ratio is.

The tool applies the capped value instead and labels the result '(capped)' so you can see the raw demand signal was stronger than what was actually applied to price.

Same core demand-ratio mechanic (current index ÷ average index), but this version adds the maximum-adjustment cap as a safeguard — the ecommerce version doesn't cap the adjustment.