Competitor Price Gap Calculator
Compares your price with a competitor’s and shows the gap in currency and %, your margin in each scenario and how many extra units you need to sell to offset a price cut (the discount break-even). Helps you decide whether to match, hold your price or differentiate.
- No sign-up
- Runs in your browser
Prices
How the math works
- Gap = (your price ÷ competitor price − 1). Positive = more expensive; negative = cheaper.
- Margin = (price − cost) ÷ price. Matching the competitor lowers your per-sale margin.
- Discount break-even: to keep the same total profit, volume must rise by current margin ÷ new margin − 1. Small price cuts demand big volume increases.
Important caveats
- Price doesn’t decide alone: shipping, delivery time, reputation and the product page also weigh in.
- Compare the same SKU and the same terms (upfront, installments, with coupon). Otherwise the gap misleads.
- Check the real margin with taxes and fees in the Margin Calculator before deciding to match.
How it works
How to calculate the price gap vs a competitor
The price gap is the difference between your price and your competitor's. In currency: gap = your price − competitor price. As a percentage: gap % = (your price − competitor price) ÷ competitor price × 100. A positive value means you are more expensive; a negative one means you are cheaper. The calculator also shows your margin in each scenario, before and after any price cut.
Example: you sell at R$ 200 and the competitor at R$ 180. The gap is R$ 20, or +11.1% more expensive. If your cost is R$ 120, your margin today is R$ 80 per unit. Matching the price at R$ 180 drops the margin to R$ 60, a 25% cut in profit per sale. The tool computes this and shows where every real goes.
The key figure is the discount break-even: how many extra units you must sell to offset the cut. Going from R$ 200 to R$ 180, you need to sell about 33% more just to keep the same total profit. If the gap is small (up to 5%) and your brand has an edge, holding the price usually pays off; gaps above 15% hurt conversion and call for a review or a clear value justification.
FAQ
Frequently asked questions
How do I calculate the price gap versus a competitor?
Divide your price by the competitor’s price and subtract 1. E.g. $199.90 ÷ $179.90 − 1 = +11.1%: you’re 11.1% more expensive. Above zero means more expensive; below, cheaper. The tool does the math and also shows the gap in currency.
Is it worth matching the competitor’s price?
It depends on your margin and the category’s elasticity. Matching cuts your per-sale profit and only pays off if volume rises enough. In very price-sensitive categories (fashion, electronics) it tends to be worth it; where there’s brand or differentiation, holding the price and justifying value is usually better.
How many extra sales do I need to offset a discount?
Use the discount break-even rule: required volume = current margin ÷ new margin − 1. With a 40% margin, cutting price by 10% (margin drops to 30%) needs ~33% more units just to match the profit. Small price cuts require big volume increases.
What should I do when I’m more expensive than the competitor?
Before cutting price, try to justify the difference: free shipping, delivery time, warranty, reputation and a better product page convert even at a slightly higher price. Since 36% of Brazilians abandon the cart when they find it cheaper elsewhere, closing that value gap often pays more than competing on price alone.
Competitive intelligence
Related tools
Blog
Articles on this topic
Pricing
Competitor cut their price: match, hold, or differentiate?
The reflex is to match instantly. But cutting your price without doing the math can destroy more margin than it brings in sales. See the discount break-even calculation, the data on Brazilian price sensitivity, and a clear rule for deciding.
10 min read
Pricing
The Free-Shipping War: How to React to a Competitor’s Threshold Without Burning Margin (2026)
When the competitor lowers the free-shipping floor, do you react, ignore it or raise yours? How to decide with data, not in a panic.
9 min read
Pricing
How to Identify Aggressive Competitor Campaigns
70% coupon, free shipping with no minimum: learn to identify aggressive campaigns and react without destroying margin.
9 min read
Pricing
Dynamic Pricing for Small Stores: Where to Begin
Dynamic pricing isn’t just for Amazon. See how a small store can adjust prices based on competitors.
9 min read
Strategy
Competitive Intelligence Playbook: what to monitor, how often, and what to do
Monitoring a competitor isn’t watching everything — it’s watching the right thing, at the right cadence, and acting. This playbook brings the frequency table by signal type, the signal→action matrix and the weekly routine to turn observation into decision.
12 min read
Segments
Competitive Intelligence for Fashion E-commerce
Fashion is a top-3 vertical in Brazilian e-commerce and the most fiercely contested — Shein and Shopee rewrote the rules. See what to monitor in fashion competitors: drops, size grids, returns and price, with real industry data.
12 min read
Pricing
Competitor price alert: know in hours, not weeks
The competitor cut its price on Friday night and you found out on Tuesday, from a customer. This guide shows what that delay costs and how to build the flow that fixes it: continuous detection, AI classification and an alert in the dashboard bell, in your inbox and on Slack, Telegram or WhatsApp.
10 min read
Strategy
How to Know When a Competitor Is Launching a Product
No launch comes out of nowhere: a social teaser, a new page on the site, a reorganized menu and a creator with a press kit all show up weeks before D-day. See the trails every launch leaves, how to detect each one automatically, and what to do with the two-week head start.
10 min read