Discount Profit Calculator
See exactly what a discount costs you in profit — and the maximum discount you can offer before you lose money on every sale.
Contribution profit after discount
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Sale price
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Dollar discount
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Margin before
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Margin after
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Profit lost per sale
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Volume uplift to break even
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Max discount before $0 profit
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"Max discount" is the point where contribution profit reaches exactly zero, accounting for any fees and shipping you've entered — it is a hard ceiling, not a recommended discount.
How it works
Formulas used
Sale price = Regular price × (1 − Discount%) Contribution profit = Sale price − Cost − Fees − Shipping Max discount (no fees) = 1 − (Cost / Regular price) Max discount (with fees) solved from: Price×(1−d)×(1−FeePct) = Cost + FeeFixed + Shipping
Worked example
$30 regular price, $8 cost, 20% discount, no fees:
- Sale price: $30 × 0.80 = $24
- Contribution profit: $24 − $8 = $16 (margin 66.7%, down from 73.3%)
- Max discount before $0 profit: 1 − (8/30) ≈ 73.3%
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Frequently asked questions
Is the max discount a safe number to actually offer?
No — it is the point of exactly zero contribution profit, meaning zero contribution to fixed overhead. Treat it as a hard ceiling, not a target.
Does this include the effect of selling more units?
The "volume uplift" figure shows how many more units you would need to sell to match your original profit — it does not predict whether customers will actually buy more.
Set a discount ceiling before launch
A discount changes revenue immediately while most unit costs stay fixed. Use the result to identify how much contribution profit remains and how many additional orders would be needed to recover the profit sacrificed on each sale.
Use the ceiling responsibly
- Calculate with the true delivered unit cost, including variable fulfillment and payment fees.
- Compare several discount levels instead of testing only the marketing team favorite.
- Set a campaign budget and end date before the offer goes live.
Costs often missed
- Returns can rise when discounted purchases attract lower-intent customers.
- Affiliate commissions and marketplace fees may apply to the discounted price.
- Existing customers may use the offer without creating any incremental sale.