Discount Profit Calculator
A discount reduces revenue faster than it reduces most costs. Compare contribution before and after a promotion and the extra sales needed to earn the same amount.
Your calculation
Free toolUse one currency and a consistent tax basis. No currency conversion.
Results include only the costs and assumptions entered.
How to use this calculator
Enter your values in one currency. The result updates as you type. Check the fee and tax assumptions before using it for a pricing decision, then download a PDF if you want a record.
How the result is calculated
Discounted price = price × (1 − discount ÷ 100). Included variable cost stays constant. The volume multiplier compares original contribution with discounted contribution.
Worked example
£20 price, £12 cost and 20% discount reduces contribution from £8 to £4. You need twice as many sales to match it.
What should I include in my costs?
Include the costs that change with the item or order: materials, purchasing, making time, packaging, fulfilment and applicable fees. Allocate wider overhead separately. An omitted cost will make the estimate look better than it should.
Does this calculate my tax liability?
No. Entered tax treatment is an assumption for this calculation. The tool does not determine VAT registration, sales-tax nexus, tax rates by location or business income taxes. Check unusual situations with a qualified adviser.
Can I use USD?
Yes. Choosing US inputs uses dollars without converting amounts. Country-specific presets only apply where explicitly stated. Changing a symbol does not establish a platform fee or tax rule.
Questions about this calculation
How can a 20% discount halve contribution?
At £20 price and £12 fixed included costs, contribution is £8. A 20% discount makes the price £16 and contribution £4, requiring twice as many sales to match the original total under those assumptions.
Do percentage fees move with the discount?
The simple comparison holds its included cost fixed. Use the full product tool when fees change with price, and update tiered or exact manual charges for each scenario.