Discount Impact calculator
See profit after a discount and the extra sales needed to maintain the same profit.
Discount Impact calculator
All amounts use the selected currency. Changing it does not convert values. Example inputs are editable.
Your inputs stay in this page. Reloading clears the comparison.
How to calculate it
Discounted price = regular price × (1 − discount ÷ 100). Per-sale profit = discounted price − cost. Required volume lift = original profit ÷ discounted profit − 1.
Worked example
A $100 item costing $60 makes $40 before a sale. A 20% discount cuts profit to $20, so you need twice as many sales to make the same total profit.
Results are estimates. Check your inputs and account for any costs not included before making financial decisions.
The extra-sales trap
A 20% discount is not a 20% reduction in profit. For an item priced at 100 with a cost of 60, profit drops from 40 to 20. Selling 100 units previously earned 4,000 before overhead; now 200 units are required to earn the same contribution.
What stays constant here
The calculator holds cost per sale constant. If a fee is a percentage of revenue, recalculate that fee at the discounted price before entering your total cost. It assumes the additional orders do not require more staff, higher shipping rates or extra advertising.
Check capacity before running a sale
Pin the normal-price result with a zero discount, then try the proposed discount. Ask whether the required extra orders are realistic and whether you can fulfil them. A sale price at or below cost has no meaningful positive-profit recovery volume. The tool does not predict whether a promotion will generate demand.
Planning estimate only. Check all costs, tax treatment and your actual circumstances. Calculation and rounding notes.
Frequently asked questions
Why might a 20% discount cut profit by 50%?
Because a discount reduces the selling price, not the cost. If your original profit was $40, a $20 discount halves it.
What does required volume lift mean?
The percentage increase in units sold needed to keep total profit unchanged, assuming all other costs remain the same.
What if the discounted price is below cost?
The tool flags that as a loss. Selling more units at a loss does not recover the original profit.