Discount Margin Calculator
See how a promotion changes the gross profit on each sale.
Example result
- Discounted price
- 80
- Profit per unit
- 20
The cost is held constant. Discounts can turn profitable products into losses.
How to calculate it
The cost is held constant. Discounts can turn profitable products into losses.
Worked example
This is an illustrative scenario, not a market benchmark. Select “Reset to example” to reproduce it in the calculator.
- Original selling price
- 100 currency units
- Unit cost
- 60 currency units
- Discount
- 20 %
Margin after discount: 25%
Discount Margin FAQ
Why does a 20% discount reduce profit by more than 20%?
The discount comes entirely out of gross profit when unit cost is unchanged. At a 100 price and 60 cost, a 20 discount halves the 40 profit.
What does this calculation leave out?
The cost is held constant. Discounts can turn profitable products into losses.
Are my inputs saved or sent to a server?
Calculations run in your browser. We do not send your inputs or results to our server or analytics. A comparison stays in this tab until it is refreshed. A CSV is saved only when you choose to download it. See our privacy policy for ordinary hosting and optional analytics data.
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