Discount margin calculator

Will this discount lose money? Enter a product's price, what it costs you, and the discount. You get the profit after the discount, the deepest safe discount, and how many more sales you'd need to break even.

The normal price, before any discount.

What one unit costs you. In Shopify: the product's “Cost per item”.

Enter a price, cost and discount.
Price after discount
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Profit per sale, full price
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Profit per sale, discounted
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Margin, full price → discounted
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Deepest safe discount
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Extra sales needed to break even
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Already ran discounts? Find the orders that sold below cost from your Shopify exports.

How to tell if a discount loses money

A discount comes straight out of your profit, not your revenue. The safe limit is your margin:

Maximum discount % = (price − cost) ÷ price × 100

Anything deeper sells below cost. But even a discount under that limit can leave you worse off, because each sale earns less. To earn the same total profit you need more sales:

Extra sales needed = profit per sale at full price ÷ profit per sale after discount − 1

Margin10% off20% off30% off
30%+50% sales+200% salessells at cost
40%+34% sales+100% sales+300% sales
50%+25% sales+67% sales+150% sales
60%+20% sales+50% sales+100% sales

So on a 40% margin, a 20% code only pays off if it at least doubles sales of that product.

Questions

What is the maximum discount I can give without losing money?

Your margin. Maximum discount % = (price − cost) ÷ price × 100. A product priced at $40 that costs $31 can take at most 22% off before each sale loses money.

How many more sales do I need to make up for a discount?

Divide the profit per sale at full price by the profit per sale after the discount, then subtract 1. On a 40% margin, a 20% discount halves the profit per sale, so you need 100% more sales just to earn the same profit.

What should I use as cost?

What one unit costs you to buy or make: Shopify's “Cost per item”. For a stricter check, add per-order costs such as packaging and payment fees.

Does this work for Shopify discount codes that apply to the whole order?

For one product, yes: use the percentage the code takes off. For real orders where codes stack or apply across several products, use the loss report on your Shopify exports; it spreads order-wide discounts across the products in each order.