Discounting impact

Enter your margin and the discount you are considering. The calculator shows what the discount costs per unit and how much extra volume you need to sell to break even.

Required Volume Increase

66.7%

Profit Impact

-51.7%

Break-even Units

1,667

Risk Level

Medium

Discounting Impact Calculator

An analysis of discounting strategies that includes elasticity, which is how much demand changes when the price changes, and an assessment of risk

Basic Parameters

Revenue per Unit

Current Units Sold

Fixed Costs

Discount & Market Parameters

Profit Margin %

25.0%

Discount %

10.0%

Discount Type

Percentage (%)Fixed Amount ($)

Price Elasticity

1.5

Impact Analysis

New Price per Unit

$90.00

10.0% discount

Expected Units (Elasticity)

1,150

+150 units

Revenue Impact

+3.5%

$3,500.00

Net Profit Change

-$7,750.00

Profit decrease

Risk Assessment

Volume Increase Needed:66.7% ⚠ Challenging

Margin Compression:40.0% ⚠ Significant