Discount Impact Calculator

See how much extra volume you need to sell to make up for a price discount.

Current gross margin	40 %
Price discount	10 %

Current gross margin

Price discount

Extra volume needed

33.3%

With a 40% margin, a 10% discount needs 33.3% more units just to earn the same gross profit. The new margin is 33.3%.

Extra sales needed at each discount

36%Extra volume needed 900%Point at the chart, or Tab to it and use ← →

Extra volume needed

Discount	20% margin	30% margin	40% margin	50% margin
5%	33%	20%	14%	11%
10%	100%	50%	33%	25%
15%	300%	100%	60%	43%
20%	—	200%	100%	67%
25%	—	500%	167%	100%

About the Discount Impact Calculator

Enter your current gross margin and the discount you're considering. The calculator shows how many more units you'd need to sell to earn the same gross profit, the new margin, and a table for other margin and discount combinations.

A discount comes straight out of margin. To keep the same gross profit, unit sales must rise by discount ÷ (margin − discount). A 20% discount on a 40% margin needs 100% more sales.

The formula

Extra volume = discount ÷ (margin − discount)

Worked example

A product with a 40% gross margin, discounted 10%

Extra volume = 10 ÷ (40 − 10) = 33.3% more units
New margin: 30 ÷ 90 = 33.3%
At 20% off, sales must double just to stand still

Questions people ask

Are discounts ever worth it?

When they bring new customers, clear old stock or lift sales of higher-margin items.

Does this include fixed costs?

No; it compares gross profit only.