Discount Profit Calculator
See what a discount really costs you, and how many extra sales you need to make it worth it.
- Discounted price
- $80.00
- Profit per unit after discount
- $20.00
- Margin after discount
- 25%
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How to use the discount profit calculator
- Enter your regular price and cost per unit.
- Enter the discount percentage you plan to offer.
- Read how many more units you need to sell to earn the same total profit, plus your new price, profit and margin.
Discount profit formula
If the discount pushes the price down to or below your cost, no amount of extra sales will recover the profit.
Example
A product sells for 100 and costs 60, so profit is 40. A 20% discount drops the price to 80 and profit to 20. You need to sell 100% more units, double your usual volume, just to earn the same total profit.
Why discounts hurt more than they look
A discount comes straight out of profit, not revenue. On a 40% margin, a 20% discount halves your profit per unit. The lower your margin, the more extra sales a discount needs.
Smarter alternatives to discounting
Try free shipping over a threshold, gifts with purchase, bundles, or discounts on slow-moving stock only. These can lift sales while protecting the margin on your best sellers.
Frequently asked questions
How do I calculate profit after a discount?
Multiply the price by 1 minus the discount, then subtract your cost.
How many more sales do I need after a discount?
Divide your old profit per unit by the new profit per unit, subtract 1 and multiply by 100.
Is a 20% discount worth it?
Only if it lifts sales by more than the extra sales needed shown here, or brings in customers who come back.
Why does the calculator show no result?
The discount makes your price equal to or lower than cost, so there is no profit left to recover.
Should I include shipping and fees in cost?
Yes. Use your full cost per unit for a realistic answer.
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