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Discount impact on profit calculator

Before launching a promotion, compare your unit profit before and after the discount.

Your product numbers

01

Currency labels amounts only; no exchange-rate conversion.

Per unit, excluding recoverable sales tax.

Percentage reduction from the original price.

Include direct costs and non-recoverable taxes.

Your cost per unit. Selling price here includes the amount the customer pays.

Boxes, bags or other direct packaging costs.

A percentage of the sale amount. Enter your actual provider fee; no provider rate is assumed.

If charged per order, allocate the fee across the units in that order.

Calculator inputs are not uploaded or saved to an account. Reports are prepared locally for download to your device.

Understand the number before the decision

A small discount can change profit substantially

With an original price of 40, product, shipping and packaging costs of 23, and fees of 3% plus 0.30, contribution before discount is 15.50. A 20% discount makes the price 32 and contribution 7.74. Price falls by 8, but contribution falls by 7.76 because percentage fees fall too.

How many extra sales would offset the discount?

When contribution is positive both before and after the promotion, divide original contribution by discounted contribution. The example needs about 2.003 times the units, or roughly 100.26% more sales, to maintain total contribution. This is a mathematical comparison, not a forecast that the promotion will attract those orders.

When extra volume cannot compensate

If the discount makes unit contribution zero or negative, selling more of this product alone cannot restore the original contribution. Review the offer or costs rather than relying on volume. The calculator assumes constant per-unit costs; bulk purchasing savings and campaign expenses are not included unless you enter them.

What is included?

Price and costs are per unit. Fees are a percentage of the sale amount plus a fixed per-unit fee. Exclude recoverable sales tax from both price and cost so it is not counted as profit. Add advertising or return allowances to unit cost if needed. Numbers round for display only, except suggested price and break-even units, which round up. Currency is a label only. No exchange rates, preset provider fees or input uploads are used.