Discount Profit Calculator

Because the discount comes out of profit, not the full price. If your margin is 30% and you cut price 20%, most of that 20% is subtracted directly from the 30% you were keeping — so profit can fall by two-thirds. The thinner your margin, the more devastating a given discount is.

It is how many more units you must sell during the promotion just to earn the same total profit as selling fewer units at full price. If a 20% discount halves per-order profit, you need to roughly double volume to come out even. It's the number that tells you whether a sale is worth running.

Yes — if it lifts volume by more than the break-even percentage, clears aging inventory, or wins repeat customers worth more later. The point of the calculator is to make that bar explicit so the decision is deliberate rather than hopeful. Discounts can be smart; blind discounts erode the business.