Frequently Asked Questions
How do I calculate a percentage discount?
Sale price = Original price × (1 - discount%). For a 30% discount on $100: $100 × 0.70 = $70. Savings = $100 - $70 = $30.
How much does a discount hurt my profit margin?
Discounting has a multiplied effect on profit. A 10% discount on a product with 40% margin reduces your profit by 25%. This calculator shows the exact margin impact for any discount.
What is a good discount percentage?
Effective discounts typically range from 10-30%. Under 10% rarely motivates purchase decisions. Over 50% can devalue your brand and attract deal-seekers who won't become loyal customers.
How do I calculate the maximum discount I can offer?
Enter your cost price and desired minimum margin in this calculator. It will show you the maximum discount percentage you can offer while staying profitable.
How it works
- Choose whether to calculate a sale price, find your max discount, or reverse calculate.
- Enter your product's original price and the discount amount.
- Add your cost price to see how the discount multiplies against your actual profit margin.
- Review the reference table to see standard discount tiers.
Tips for best results
- •A 10% discount on a 30% margin product actually destroys 33% of your profit. Always check the margin impact.
- •BOGO (Buy One Get One Free) is effectively a 50% discount per unit.
- •Use 'Find Max Discount' before running a clearance sale so you don't accidentally lose money.