Discount Impact Calculator

Assumes unit cost stays constant. A nonpositive discounted profit cannot recover positive profit through volume.

Your numbers

Enter your numbers to see the result.

How Discount Impact works

Use the original margin to infer constant unit cost, then subtract that cost from the discounted price. Compare old and new unit profit to estimate the extra sales needed to preserve profit.

A worked example

These sample values illustrate the calculation. Use your own numbers in the calculator for your result.

Example inputs
Normal price
100
Normal margin %
40
Discount %
15
Expected sales increase %
25
Profit per sale before
$40.00
Profit per sale after
$25.00
Extra sales needed
60%
Projected total profit change
-21.875%

Assumptions and limits

Assumes unit cost stays constant. A nonpositive discounted profit cannot recover positive profit through volume.

Planning estimate only. This is not legal, tax, payroll or accounting advice.