Discount calculator: how many more sales does a discount need?

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Results are estimates to guide decisions, not financial advice. Your numbers stay in your browser.

Discounts cost more than they look

A discount comes straight out of your margin. At a 40% margin, a 20% discount halves the profit on every sale, so you need twice the sales just to stand still.

Extra sales needed = margin ÷ (margin − discount) − 1

Better than a discount

Add value instead: a bonus, faster delivery or a longer guarantee.
Offer a limited bundle rather than cutting the price of the main product.
Reward loyal customers privately instead of discounting for everyone.

Questions

What if the discount is bigger than my margin?

Then every discounted sale loses money, however many you sell. The tool will show this.

Do discounts ever make sense?

Yes: to clear old stock, win back lapsed customers, or bring in buyers who will come back at full price. Plan them, and measure what happens after.

Does this include the effect on my brand?

No. Frequent discounts also teach buyers to wait for the next sale, which this calculation does not show.

Is my data saved?

No. The calculation runs in your browser. Nothing is sent unless you choose to email yourself the result.

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