The hidden cost of a discount
When product and fulfilment costs stay fixed, a discount cuts contribution faster than it cuts revenue. Compare the profit left on each discounted order with the extra orders needed to preserve total contribution.
PRICING / FREE TOOL
Discount Profit Calculator
See how a promotion changes profit per order and the volume needed to make up the difference.
Instant calculation No account needed
LIVE RESULT
Discounted profit per order
₹300.00See how a promotion changes profit per order and the volume needed to make up the difference.
Original profit per order₹400.00
Discounted price₹900.00
Original margin40%
New margin33.33%
Profit reduction per order25%
Scenario comparison
Illustrations based on the inputs above, not a guarantee.
Orders to match original contribution134
Required order increase34%
THE THINKING BEHIND THE NUMBER
How to use this calculator
Discounts reduce contribution more sharply than revenue when unit costs do not fall. Compare both profit per order and the order lift required.
THE METHOD
Discounted price = original price × (1 − discount rate). Required orders = original total contribution ÷ discounted contribution per order.
A practical example
For illustration, enter original selling price ₹1,000, unit variable cost ₹600, discount percentage 10%, current order volume 100. With the remaining fields at their starting values, the discounted profit per order is ₹300.00. Replace these sample figures with your own numbers before making a decision.
How to read your result
If discounted contribution is zero or negative, more orders cannot restore the original contribution.
Use the result alongside your store analytics, product costs and operating context. If the inputs are estimates, treat the output as an estimate too. Change one input at a time to understand what drives the result.
GO DEEPER
Understand the result before you act
CLEAR ANSWERS
Discount Profit Calculator FAQs
How do I use the Discount Profit Calculator?+
Enter your own business figures in the labelled fields. The result updates immediately and uses this calculation: Discounted price = original price × (1 − discount rate). Required orders = original total contribution ÷ discounted contribution per order.
What should I keep in mind when reading the result?+
If discounted contribution is zero or negative, more orders cannot restore the original contribution.
Do I need to create an account to use this tool?+
No. This calculator is free to use without an account. Its numeric inputs are processed in your browser.
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