Free merchant tool

Discount Calculator

See the sale price, what a discount does to your margin, and how many more sales you need to earn the same profit.

Enter the price and discount

Your numbers stay in your browser.

Per unit
$
The full price before the discount.
%
The percentage taken off the regular price.
$
Add it to see what the discount does to your profit.

How a discount affects your profit

A discount lowers the price, but your product cost stays the same, so the whole discount comes out of your profit. That's why a modest discount can call for a large increase in sales just to stand still.

Sale price = Price × (1 − Discount ÷ 100)
Profit after = Sale price − Cost
Extra sales needed = (Profit before ÷ Profit after − 1) × 100

Worked example

A product sells for $50 and costs $20, so each sale makes $30. At 20% off the price is $40 and each sale makes $20. Selling 100 units at full price earns $3,000; at the sale price you need 150 units to earn the same, which is 50% more sales.

Merchant tip: Before you run a sale, compare the extra sales you would need with what your past promotions actually delivered. If the numbers don't add up, a free gift or free shipping threshold can cost you less than a straight discount.

Discount calculator FAQ

How do I calculate a percentage discount?

Multiply the price by 1 minus the discount as a decimal. 20% off $50 is 50 × 0.8 = $40, so the customer saves $10.

How do I work out the discount percentage from two prices?

Subtract the sale price from the regular price, divide by the regular price and multiply by 100. A price cut from $50 to $40 is (50 − 40) ÷ 50 × 100 = 20% off.

Why do I need so many more sales after a discount?

The discount comes out of your profit, not your cost. On a $50 product that costs $20, 20% off cuts the price by 20% but cuts the profit per sale from $30 to $20, a third less. You need half as many sales again to earn the same total profit.

Does a discount change my margin percentage?

Yes, and by more than you might expect. In the example above the margin falls from 60% to 50%, because the profit falls by $10 while the price only falls to $40.