Free discount impact calculator
See how many more sales a discount needs to break even, and what a price rise would let you lose instead. Free, no email.
1Your numbers
Example numbers: replace with yours2Your result
Your result will appear here
Fill in the form and press Check my discount. You'll get:
Extra sales to break even
—
Profit per sale
—
Or raise the price instead
—
Your promotion's result
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Plus a table of break-even sales by margin and discount, and better trades than money off.
How the Discount Impact Calculator works
- 01
Enter price, margin and discount
Your full price, gross margin (price minus cost to deliver) and the discount you're considering.
- 02
Read the break-even lift
See how many more sales the discount needs just to earn the same gross profit, and how much profit each discounted sale loses.
- 03
Check a real promotion
Optionally enter sales at full price and the extra sales you expect, to see whether the promotion gains or loses gross profit.
- 04
Compare with a price rise
See how much volume you could lose with the same-sized price rise and still earn the same.
- 05
Use the table
See break-even lifts across common margins and discounts, with your margin highlighted.
Questions about the Discount Impact Calculator
What it does, what it costs, and how far to trust the result.
01How much more do I need to sell to cover a discount?
Divide the discount by your gross margin minus the discount. At a 40% margin, 10% off needs 10 ÷ 30 = 33% more sales; 20% off needs 100% more (double); 30% off needs 300% more (four times).
02What happens if the discount is bigger than my margin?
Every discounted sale then loses money, so no increase in sales can make it up. The calculator shows this as impossible.
03Is raising prices safer than discounting?
Often. At a 40% margin, a 10% price rise keeps gross profit level even if you lose up to 20% of sales (10 ÷ (40 + 10)). The same 10% discount needs 33% more sales.
04Why do small price changes affect profit so much?
Because the cost of each sale doesn't change. In Marn and Rosiello's 1992 Harvard Business Review study, a 1% price cut would have wiped out about 11% of the average company's operating profit.
05What should I offer instead of a discount?
Trade price for something of value: a longer contract, payment upfront, a bigger order, a case study or referral, a smaller package at a lower price, or extra service instead of money off.
06Is the discount impact calculator free?
Yes, completely free, with no sign-up and no email. It runs in your browser and nothing you enter is sent anywhere.
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