Discount Profit Calculator
Calculate how a discount affects your profit before you launch a promotion. Compare your regular and discounted profit, and find the maximum discount you can offer before reaching break-even.
Beyond the maximum discount, every sale loses money at the current costs and fees.
Profit at different discounts
| Discount | Profit | Margin |
|---|---|---|
| 0% | $17.13 | 57.1% |
| 10% | $14.52 | 53.8% |
| 20% | $11.90 | 49.6% |
| 30% | $9.29 | 44.2% |
| 40% | $6.68 | 37.1% |
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Why discounts hurt more than they look
A 20% discount doesn’t cut your profit by 20% — it cuts it by far more, because your fixed costs stay the same while revenue drops. And because marketplace fees are a percentage of price, the fee savings are small relative to the revenue you give up.
The break-even discount
Your maximum discount before break-even is the largest percentage you can take off your regular price and still cover all costs and fees with zero profit. Go beyond it and every sale loses money — even if it “looks” like a deal.
When a discount still makes sense
A lower-margin discount may still make sense when it helps clear old stock, acquire a customer who may return later, or increase order volume. This calculator shows the immediate financial impact so you can compare the trade-off before launching a promotion.
Frequently asked questions
Fixed costs (product, packaging, shipping) don’t fall with the price, and percentage fees only fall slightly. Most of the discount comes straight out of your profit.
It’s the discount that brings your net profit to exactly zero — shown above. Anything larger loses money per sale.
Selling below break-even means losing money on each sale. Some businesses may choose to do this for specific strategic reasons, such as clearing inventory, but the calculator shows the immediate cost so you can make that decision with the numbers in front of you.
Disclaimer: This calculator provides estimates for informational purposes only. Results depend on the figures you enter and do not account for taxes, currency conversion, returns, or fees specific to your seller programme. Always verify actual rates in your marketplace Seller Center.