Discount Margin Impact Calculator
See how much extra volume a discount must generate.
Enter your values
ⓘ Live results
Results
- Extra volume needed
- 33.33%
- Margin before
- $40.00 (40%)
- Margin after
- $30.00 (33.33%)
- Discounted price
- $90.00
Quick answer
A discount cuts margin faster than price. The volume you need to break even rises steeply as margin thins.
required volume = old margin / (old margin - discount)
How to use the Discount Margin Impact Calculator
- 1Enter list price and the cost of the unit.
- 2Enter the discount you are considering.
- 3Check whether the extra volume required is realistic.
Worked example
Using the values the calculator loads with:
Inputs
- List price100 $
- Unit cost60 $
- Discount10 %
Results
- Extra volume needed33.33%
- Margin before$40.00 (40%)
- Margin after$30.00 (33.33%)
- Discounted price$90.00
Frequently asked questions
Why does a 10% discount hurt so much?
It comes entirely out of margin; on a 40% margin it removes a quarter of your profit per unit.
Better alternatives?
Bundling, longer terms or added services protect price integrity.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.