# Margin With Discount Calculator

URL: https://speedycalculator.com/calculators/finance/margin-discount/
Last updated: 2026-10-25

> The margin with discount calculator shows what a discount does to your profit: the price after discount, the new margin and markup, profit per unit – and how many more units you must sell to keep the same total profit.

## Inputs

- Cost
- Regular price
- Discount (%)
- Units normally sold

## Results

- Price after discount
- Margin before discount
- Margin after discount
- Markup after discount
- Profit per unit after discount
- Sales increase needed to keep profit
- Units needed to keep profit

## Formula

```
Price after discount = price × (1 − discount)
New margin = (discounted price − cost) ÷ discounted price
Sales increase needed = old profit per unit ÷ new profit per unit − 1
```

## Explanation

Discounts eat into margin fast: on a 30% margin, a 10% discount cuts profit per unit by a third, so you need 50% more sales just to break even on the promotion.

### How to use the Margin With Discount Calculator

- **Cost**
- **Regular price**
- **Discount**
- **Units normally sold**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the cost, the regular price (or margin) and the discount.

### Tips

- Know the difference between margin (profit ÷ price) and markup (profit ÷ cost).
- Apply successive discounts one after another – they do not simply add up.
- Check whether prices already include sales tax or VAT.
- Round prices only at the very end of the calculation.

### Common mistakes to avoid

- Adding discount percentages together.
- Pricing from a target margin using the markup formula.
- Forgetting payment-processing and shipping fees.

### Inputs explained

FieldWhat to enterCostAmount in your currencyRegular priceAmount in your currencyDiscountIn %Units normally soldA number

### What each result means

- **Price after discount** = [Regular price]×(1 - [Discount]÷100)
- **Margin before discount** = ([Regular price] - [Cost])÷[Regular price]×100
- **Margin after discount** = ([Price after discount] - [Cost])÷[Price after discount]×100
- **Markup after discount** = ([Price after discount] - [Cost])÷[Cost]×100
- **Profit per unit after discount** = [Price after discount] - [Cost]

### Example values

How the main result changes when **Cost** changes and everything else stays at the example values above:

CostPrice after discount359052.590709087.5901059014090

## Worked example

Inputs — Cost: $70; Regular price: $100; Discount: 10 %; Units normally sold: 1,000.

Results — **Price after discount = $90.00**; Margin before discount = 30 %; Margin after discount = 22.22 %; Markup after discount = 28.57 %; Profit per unit after discount = $20.00; Sales increase needed to keep profit = 50 %; Units needed to keep profit = 1,500.

## FAQ

**How does a discount affect margin?**
Margin falls by more than the discount because cost stays the same.

**How much more do I need to sell?**
Old profit per unit ÷ new profit per unit − 1.

**Are discounts ever worth it?**
Yes, if they bring enough extra volume, clear old stock or win long-term customers.

**What formula does the Margin With Discount Calculator use?**
Price after discount = price × (1 − discount).