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
| Field | What to enter |
|---|---|
| Cost | Amount in your currency |
| Regular price | Amount in your currency |
| Discount | In % |
| Units normally sold | A 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:
| Cost | Price after discount |
|---|---|
| 35 | 90 |
| 52.5 | 90 |
| 70 | 90 |
| 87.5 | 90 |
| 105 | 90 |
| 140 | 90 |
Formula
Price after discount = price × (1 − discount)New margin = (discounted price − cost) ÷ discounted priceSales increase needed = old profit per unit ÷ new profit per unit − 1Worked 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.
Frequently asked questions
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).