Discount Profit Impact Calculator
See how a discount changes selling price, gross profit, and margin. Calculate the additional sales volume needed to preserve your original gross profit.
02 / YOUR RESULT
Start with your numbers.
The example calculates when this page loads.
How the calculation works
Discounted price = original price × (1 - discount / 100). New gross profit = discounted price - cost. Extra volume = (original gross profit / new gross profit - 1) × 100.
A calculation you can check.
A 10% discount on a $2,000 price brings the price to $1,800. With a $1,200 cost, gross profit falls from $800 to $600. You need 33.3% more sales at that price to preserve total gross profit.
When to use this calculator
Use this discount calculator before accepting a price reduction. Keep the direct cost per sale unchanged only when the scope and delivery effort really stay the same. Compare the lost profit with the extra sales volume you can realistically deliver. A smaller discount combined with a narrower scope may produce a different result; update the cost if you are actually removing work.
Assumptions and limits
The extra-volume result assumes identical sales and constant per-sale cost. It excludes new overhead, overtime, acquisition costs, and operational bottlenecks caused by higher volume. If the discounted price is at or below cost, more identical sales cannot restore the original positive gross profit. The calculator flags that situation instead of showing a misleading volume target.
Before you use the result.
Why does a 10% discount cut profit by more than 10%?
The discount reduces revenue while the entered cost stays fixed. The reduction is therefore a larger share of gross profit.
What if the discounted price is below cost?
Each sale loses money under the entered assumptions. There is no finite additional volume that preserves the original positive gross profit.
Does this account for extra staffing?
No. Enter a revised direct cost and separately assess any additional overhead or staffing required by higher volume.
Calculator inputs are processed on your device and are not saved by this tool or sent to MNMVL. The optional CSV download includes your current inputs and result. These are simplified business planning models, not accounting, tax, or investment advice.