Compare baseline versus promotion revenue and profit using your original price, discount, unit cost, and volume assumptions. See how discounts affect revenue, gross margin, net profit after fixed costs, and the volume uplift needed to break even. Educational use only, not pricing, marketing, accounting, or financial advice.
Enter pricing and volume details
Enter your original price, discount, unit cost, baseline volume, expected promo volume or volume uplift, and optional fixed costs to compare baseline vs promotion revenue, gross profit, net profit, and required volume uplift to break even. This is an educational estimate only and does not replace detailed pricing or financial analysis.
This calculator compares a baseline scenario (no discount) to a promotion scenario (discount applied). It uses your assumptions to estimate:
Discount Percentage
How much the price is reduced from the original. For example, a 20% discount on a $100 product means the promo price is $80.
Unit Margin
The selling price minus the variable cost per unit. This is your contribution margin per unit sold. A 20% discount can significantly reduce your unit margin, even if the discount seems small.
Gross Profit
Unit margin multiplied by the number of units sold. This is the profit before fixed costs.
Volume Uplift
The expected percentage increase (or decrease) in units sold because of the promotion. For example, +25% means you expect to sell 25% more units than the baseline.
Break-even Volume Uplift
The additional volume needed at the discounted price to maintain the same gross profit as the baseline. If your margin drops by half, you need to sell twice as many units to break even.
Gross Profit Change: Shows how much more or less gross profit you would make with the promotion compared to baseline. A negative number means the promotion reduces gross profit at the assumed volume uplift.
Sensitivity Chart: The line chart shows how gross profit change varies at different volume uplifts. The horizontal zero line represents break-even with baseline profit.
Required Uplift: If the break-even volume uplift is very high (e.g., +100%), it means you would need to double your sales volume just to maintain the same profit as without the discount.
This calculator is for educational and planning purposes only and does not provide pricing, marketing, accounting, tax, financial, or investment advice. Actual pricing decisions should consider detailed financial data, customer behavior, competitive context, and professional guidance. Results are estimates based on user-entered assumptions and may not reflect actual outcomes.
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Understanding the profit impact of discounts helps you evaluate promotion strategies and set realistic volume expectations for your business.
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