Discount ROI Calculator
Does a price discount pay for itself through extra volume?
Your numbers
Result
Profit change
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How this is calculated
Discounts lift units but cut margin per sale. This calculator compares profit before and after a discount at an expected volume lift, and shows the break-even lift you need for the discount to be free.
- Disc price = base x (1 - discount%)
- Break-even lift% = (discount% x base) / (disc price - COGS) x 100
What to make of the number
A 20% discount needs roughly a 33% volume lift just to stand still on contribution profit.
Frequently asked questions
What if lift is uncertain?
Model a range; discounts only pay when elastic demand actually shows up.