Discount break-even calculator

A discount feels like growth because volume goes up. This shows how much it has to go up just to stand still, before you approve the next sitewide sale.

Currency

The product

₹
(Price − product cost) ÷ price, before any discount or marketing.
%

The promotion

%

Per week or month, optional.

Extra volume–See chart

Private by design: calculations run on your device and nothing you enter is stored or sent.

Built and reviewed by Shiva Sharma. Updated .

How it is calculated

Margin after discount   = Gross margin − discount
Volume multiplier       = Gross margin ÷ (Gross margin − discount)
Extra volume needed     = Volume multiplier − 1

Gross margin and discount are both percentages of the full selling price. If the discount is equal to or bigger than the margin, every discounted unit loses money and no amount of extra volume can make up for it.

How to use the result

Compare the required uplift with what past promotions actually delivered, measured against a comparable period, and remember that some of the extra volume is pulled forward from full-price sales you would have made anyway.

Questions

How much more do I need to sell to cover a discount?

Divide your gross margin by your gross margin minus the discount. With a 60% margin and a 20% discount, you need 60 ÷ 40 = 1.5 times the volume, or 50% more units, just to earn the same gross profit.

Why are discounts so expensive for low-margin products?

Because the discount comes straight out of margin. On a 30% margin product, a 20% discount leaves 10% margin, so you need three times the volume to earn the same profit.

Does this include advertising cost?

No. It compares gross profit before marketing. If the promotion also needs extra ad spend, the real uplift required is higher.

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