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Discount Calculator

Evaluate markdown depths, required unit sales lift, and margin preservation.

Price, Discount & Cost Inputs

Model profit impact and required sales lift

৳

Full retail selling price before applying any discount.

%

Promotional percentage off the original price.

৳

Direct product cost (COGS, fulfillment, fees) per unit.

Baseline monthly unit sales at full price to compute extra units needed.

Discount & Profit Impact Summary

SALE PRICE

BDT 80

You save the customer BDT 20 (20% off BDT 100)

Amount Saved

BDT 20

20% markdown per unit

Profit / Unit (Before → After)

BDT 40 → BDT 20

-50.0% change in unit profit

Margin (Before → After)

40.0% → 25.0%

Gross profit % of selling price

Extra Sales Needed for Same Profit

+100.0%

Sell 200 units (+100 extra)

Discount Profitability Insights

  • A 20% discount cuts your profit per unit by 50.0% (from BDT 40 down to BDT 20), so you must sell 100.0% more to earn the same total profit.
  • Your gross profit margin drops from 40.0% before the discount to 25.0% at the BDT 80 sale price.
  • To match the BDT 4,000 monthly profit from 100 full-price sales, you must sell 200 units (+100 extra units).
What-If: Discount Slider (0% to 60%)

Drag to test how deeper discounts increase the extra sales volume needed to preserve profit.

20%
0%60%

Simulated Discount (20% Off)

Sale Price: BDT 80 · Profit/Unit: BDT 20

+100.0% Extra Sales Needed

200 total units (+100 extra)

DiscountSale PriceProfit / UnitMargin AfterExtra Sales Needed
5% offBDT 95BDT 3536.8%+14.3% (115 u)
10% offBDT 90BDT 3033.3%+33.3% (134 u)
15% offBDT 85BDT 2529.4%+60.0% (160 u)
20% offCurrentBDT 80BDT 2025.0%+100.0% (200 u)
30% offBDT 70BDT 1014.3%+300.0% (400 u)
40% offBDT 60BDT 00.0%Impossible

What is the Discount Calculator?

A discount calculator for business measures both the customer-facing sale price and the hidden unit-economics impact of running a promotional markdown. While basic percentage-off tools only subtract a percentage from a sticker price, business owners, retail buyers, and ecommerce founders need to know how a discount affects profit per unit, gross margin percentage, and required sales volume.

This free price discount calculator features two dedicated modes: Discount impact on profit (which computes your sale price, dollar savings, profit and margin before and after the discount, and the exact extra sales needed to earn the same total profit) and Find discount % (which calculates the exact markdown percentage and amount saved from an original price and a sale price).

How to use the Discount Calculator

Follow these steps to evaluate a promotional markdown before launching a sale:

  1. Select Your Calculation Tab: Keep Discount impact on profit selected to analyze unit margins and required volume lift, or switch to Find discount % if you already have an original price and sale price.
  2. Enter Original Price & Discount (%): Input your regular full retail price and the percentage markdown you plan to offer.
  3. Enter Cost per Unit: Input your direct product Cost of Goods Sold (COGS) so the calculator can measure unit profit and margin before and after the discount.
  4. Add Optional Current Monthly Units: Enter your baseline monthly unit sales at full price to see the exact total units and extra units you must sell to earn the same monthly profit.
  5. Test Markdown Tiers & Download PDF: Drag the What-If discount slider (0% to 60%) and compare the 5%, 10%, 15%, 20%, 30%, and 40% discount table, then click Download Report to export an A4 PDF.

Discount Calculator formula

To calculate the sale price, margin compression, and extra sales needed after discount formula, use these equations:

Sale Price = Original Price × (1 − (Discount % ÷ 100))
Amount Saved = Original Price − Sale Price
Profit per Unit (Before) = Original Price − Cost per Unit
Profit per Unit (After) = Sale Price − Cost per Unit
Margin Before (%) = (Profit Before ÷ Original Price) × 100
Margin After (%) = (Profit After ÷ Sale Price) × 100
Extra Sales Needed (%) = ((Profit Before ÷ Profit After) − 1) × 100
Total Units Needed = ⌈ Current Units × (Profit Before ÷ Profit After) ⌉

For Tab (b) Find discount %: Discount (%) = ((Original Price − Sale Price) ÷ Original Price) × 100.

Worked example

Let's walk through a worked example using the exact default figures pre-loaded in the calculator above:

  • Original price: $100
  • Discount (%): 20%
  • Cost per unit: $60
  • Current units sold per month: 100 units
1. Sale Price = $100 × (1 − 0.20) = $80.00 (Amount Saved = $20.00)
2. Profit Before Discount = $100 − $60 = $40.00 / unit (40.0% Margin)
3. Profit After Discount = $80 − $60 = $20.00 / unit (25.0% Margin)
4. Extra Sales Needed (%) = (($40 ÷ $20) − 1) × 100 = +100.0%
5. Total Units Needed = ceil(100 × ($40 ÷ $20)) = 200 units (+100 extra units)

Although 20% off sounds like a modest promotion, it cuts your unit profit by 50% (from $40 down to $20). To earn the same $4,000 monthly profit that 100 full-price sales generated, you must sell 200 units—an extra 100 units (+100% volume lift).

Why it matters

Unplanned discounting is one of the fastest ways profitable businesses accidentally erase their net earnings. Running your numbers through a discount impact on profit model before launching a flash sale or approving a B2B sales concession ensures your marketing team knows the exact volume lift required to justify the markdown.

For deeper pricing and unit-economics analysis, combine this tool with our free product pricing calculator, convert between cost-plus markup and margin in the cost markup calculator, check your baseline retention in the gross profit margin calculator, or calculate how a price change shifts your monthly fixed-cost threshold in the break-even calculator.

Frequently asked questions

A promotional discount comes 100% out of your gross profit dollar buffer because your unit Cost of Goods Sold (COGS) does not shrink when you put an item on sale. When a $100 product costs $60 to source, your initial profit is $40. Taking $20 off the selling price reduces your profit from $40 directly to $20—cutting unit profit in half (50%) and requiring you to double your sales volume (+100%) just to earn the same total dollars.

Last updated: October 10, 2026

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Estimates only, not financial advice: All figures produced by Threeaid are mathematical estimates based on your inputs. They should not replace professional accounting, tax, or legal counsel.