Discount ROI Calculator
A discount only pays off if the extra volume covers the thinner margin. Enter your price, cost, discount and units to see profit with and without the promo, plus the sales you need to break even.
How to use the discount ROI calculator
- Enter your regular price, unit cost and the discount you are considering.
- Add the units you normally sell and the units you expect during the promo.
- Compare the two profit figures and check the break-even unit count.
Examples
20% off a $100 product
Price $100, cost $60, 20% off, 100 baseline units, 250 expected units
Discounted price $80, profit without the discount $4,000, profit with it $5,000, incremental profit $1,000, break-even at 200 units.
Frequently asked questions
How does the break-even unit count work?
A discount shrinks your per-unit margin, so you need more sales to make the same money. We divide your baseline profit by the discounted margin to get the units the promo must sell just to match what you earned before.
What is incremental profit?
It is profit with the discount minus profit without it. A positive number means the promo earned more than your normal sales would have; a negative number means the discount cost you money.
Why does it say my discount is unprofitable?
If the discounted price drops to or below your unit cost, every sale loses money no matter how many you sell. The tool flags this so you can lower the discount or your cost first.
Does this include shipping, ads or marketplace fees?
Not on its own. Use your true landed cost per unit so the margins reflect reality, or pair it with a fee calculator for Amazon, Etsy or Shopify to load those costs in first.
Is my data private?
Yes. The calculation runs entirely in your browser. Nothing you type is sent to a server, saved or shared.
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