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Discount Profit Impact Calculator

Compare unit contribution before and after a discount and calculate the volume needed to preserve it.

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Your inputs

01 / Enter

These are editable examples, not recommended rates. Enter your own numbers.

Calculator inputs

Revenue before the proposed discount.

Held constant after discounting.

Zero retains the original selling price.

Positive or zero integer. Blank shows only the continuous multiplier.

Your result

02 / Understand

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Show the math

Currency totals round to cents. Sub-dollar unit rates use extra precision; very small rates use scientific notation. Calculations retain unrounded values.

What this means

A discount reduces unit contribution when cost stays fixed. Required extra volume is a mathematical target, not evidence that the discount will generate demand.

Worked example

$100 original price and $60 variable cost leave $40 contribution. A 10% discount gives $90 price and $30 contribution. Margins are 40% and 33.33333333%. To preserve $4,000 contribution from 100 original units requires 134 discounted units, 34 more.

How the math works

Discounted price = original price×(1−discount/100). Original contribution c0=price−cost; discounted c1=discounted price−cost. Margins divide each contribution by its corresponding price. When both contributions are positive, volume multiplier=c0/c1; required whole units=ceiling(original volume×multiplier).

About this estimate

Constant variable cost and unchanged product mix. Volume comparison is intentionally undefined for zero or negative original/discounted contribution. Price-based margin is undefined at zero price. No fixed-cost absorption, elasticity or sales forecast is modeled.

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Formula v1.0.0 · Reviewed · Tool ID: discount-profit-impact