Enter the value of a fixed variable and both the initial and final values of changing variable into the calculator to determine the fixed variable sensitivity.

- Fixed Cost Calculator
- Price Per Unit Calculator
- Cost of Goods Manufactured Calculator (COGM)
- Net Change Calculator

## Sensitivity Analysis Formula

The following formula is used to calculate a sensitivity analysis.

S = X1/Y1 * Y2

- Where S is the sensitivity (or final value of the fixed variable.)
- X1 is the initial value of the fixed variable
- Y1 is the initial value of the changing variable
- Y2 is the final value of the changing variable

To calculate a sensitivity, divide the initial value of the fixed variables by the initial value of the changing variable, then multiply by the final value of the changing variable.

## Sensitivity Analysis Definition

A sensitivity analysis a term used in finance to describe how a particular variable of a business affects another variable over time, such as sales and units sold.

## Sensitivity Analysis Example

How to perform a sensitivity analysis?

**First, determine the initial value.**Determine the initial value of the fixed variable.

**Next determine the initial value of the changing variable.**Determine the initial value of the changing variable.

**Next, determine the final value of the changing variable.**Determine the final value of the changing variable.

**Finally, perform the sensitivity analysis.**Calculate the final value of the fixed variable using sensitivity analysis.

## FAQ

**What is a sensitivity analysis?**

A sensitivity analysis is a quantitative analysis used mostly in finance to determine how a value of particular variable changes with respect to another over time. For example, if you have a good you make that you sell for $10, and it sells 1,000 units a month. How much would the units sold change if you changed the price to $20 per month. Using the sensitivity analysis, you would say it’s likely that it sells 500 units.

**How is a sensitivity analysis calculated?**

For single variable relationships, the formula above would be used. For more than one variable, a more complicated formula is needed.