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Tiered Volume Discount Calculator

"Buy more, save more" tiers are common in B2B and bulk ecommerce. Enter up to three tiers and see exactly which one applies and what it costs in profit.

Tiers

Advanced: fees & shipping
Contribution profit for this order
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Applied tier
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Customer pays
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Margin
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Regular value
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Tier 1 must start at quantity 1 (your base, possibly 0%, price). Each higher tier's discount applies to the entire order once its minimum quantity is met — not just the units above the threshold.

How it works

Formulas used

Applicable tier = highest tier whose min qty ≤ order quantity Revenue = Regular price × Quantity × (1 − Applicable tier discount%) Contribution profit = Revenue − (Quantity × Unit cost) − Fees

Worked example

$10 price, $4 cost, tiers 1+/0%, 3+/10%, 6+/20%, ordering 6 units, no fees:

Related calculators

Bundle Pricing Calculator
For a single fixed-price bundle rather than a scaling discount.
Promotion Profit Calculator
Compare tiered discounts against other promotion types.

Frequently asked questions

Does the discount apply to just the units above the threshold, or the whole order?

This calculator applies the tier discount to the entire order quantity once the threshold is met — the most common "buy more, save more" structure. A per-unit marginal-tier model would need a different formula.

Design tiers that reward incremental volume

Each discount tier should motivate a larger order without making the previous tier more profitable for the customer than the next one is for the business. Review contribution at every breakpoint, not just the maximum tier.

Build sensible thresholds

  • Place thresholds above common order quantities so the discount can change behavior.
  • Compare total contribution at the last order below and first order inside each tier.
  • Keep the number of tiers small enough for customers to understand quickly.

Check the mechanics

  • Applying a tier discount to the entire basket can create sharp margin cliffs.
  • Mixed-margin catalogs may need product exclusions or category-specific tiers.
  • Large orders can create shipping, credit and return exposure not captured by unit margin.