Discount vs Profit Calculator
Measure how a price discount changes unit profit, margin and the sales-volume increase needed to preserve gross profit.
See how discounting changes profit
Enter your current price and cost, then test a discount before running a promotion.
How the calculation works
The discounted price is current price × (1 − discount rate). Unit gross profit is price minus unit cost. When both old and new unit profit are positive, required volume uplift = old unit profit ÷ new unit profit − 1.
How to use the result
Use the volume figure as a break-even benchmark for a promotion. For example, if unit profit falls sharply, the promotion must generate enough incremental orders just to preserve the same total gross profit.
Assumptions and limitations
This model assumes unit cost does not change with volume and treats all sold units as equivalent. It does not estimate demand response, advertising cost, returns, fulfilment limits or customer lifetime value.
Example
A discount can look small as a percentage of selling price but consume a much larger percentage of unit profit when margins are already thin.