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Discount Impact Calculator
See how offering a discount affects your profit margins and how much more you need to sell to break even.
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Fill in the fields above and click Calculate to see your results.
How to use
See how offering a discount affects your profit margins and how much more you need to sell to break even.
How it's calculated
Original Margin %
((original_price - cogs) / original_price) * 100
New Margin % (After Discount)
((original_price * (1 - discount_percent / 100) - cogs) / (original_price * (1 - discount_percent / 100))) * 100
Required Sales Volume Increase (%)
(discount_percent / (((original_price - cogs) / original_price * 100) - discount_percent)) * 100
Volume increase needed to maintain same absolute profit
Examples
Seasonal Sale
- Cost of Goods Sold (COGS):300,000
- Original Price:500,000
- Discount Percentage (%):20
Frequently Asked Questions
Why is a 10% discount so impactful?
A 10% discount reduces your price, but it often reduces your profit by a much larger percentage. If your margin is 30%, a 10% discount cuts your profit by 33%!