FREE CALCULATOR
Discount profit calculator
Before offering a coupon or promotion, compare profit per sale after the discount and the extra volume needed to match your original profit.
Your numbers
Start with the example, then make it yours.
Changes the unit only. No exchange-rate conversion.
Saved in this tab only. Reset clears saved inputs.
Your results
ProfitPilot- Discounted selling price
- $20.00
- Profit before discount
- $15.00
- Margin before discount
- 60%
- Margin after discount
- 50%
- Additional sales needed
- 50%
Where the revenue goes
- Cost per unit
- $10.00
- Other costs & fees per unit
- $0.00
- Profit
- $10.00
Extra sales assumes the same unit costs. A zero or negative discounted profit cannot match a positive original profit. For percentage-based fees, enter the applicable per-unit amount; the same amount is used before and after discount.
Amounts are rounded for display; calculations use the full values. Round a target price up to your currency’s smallest unit before selling.
Behind the numbers
Behind the numbers
Discounted price = original price × (1 − discount rate)
Unit profit = selling price − unit cost − other per-unit costs
Additional volume (%) = (original profit ÷ discounted profit − 1) × 100
Rates in formulas are decimals: 30% is calculated as 0.30.
A practical example
A 20% discount can halve your profit
An item sells for $100, costs $50, and has $10 in other per-unit costs. Profit is $40. At a 20% discount, price falls to $80 and profit falls to $20. You need 100% more sales to keep the original total profit.
What this includes
- Product costs and other per-unit costs remain the same before and after the discount. Percentage fees are not recalculated automatically in this tool.
- Additional sales needed is a relative volume change, not a forecast. It applies only when original and discounted unit profits are both positive.
- Fixed overhead, tax, inventory availability, and demand changes are not modeled. A 100% discount has no defined margin because revenue is zero.
Common questions
Why do I need so many more sales?
A discount removes revenue while the cost of supplying each item may remain unchanged. If unit profit is cut in half, twice as many sales are needed for the same total profit.
What if the discounted sale loses money?
No increase in sales can match a positive original profit if each discounted sale loses money. Review costs or choose a smaller discount before relying on higher volume.