Business

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

  1. 1Enter list price and the cost of the unit.
  2. 2Enter the discount you are considering.
  3. 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

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.