Business Calculators
Discount Calculator
Apply a discount to a price and see what it costs you in margin, plus the volume needed to stand still.
Discounted price
$96.00
- Customer saves
- $24.00
- Margin after discount
- 50%
- Extra volume to hold profit
- 50%
How this calculator works
Sale price = list × (1 − discount); margin = (sale price − cost) ÷ sale price
- volume needed
- the sales increase required to keep total profit unchanged
Example calculation
Illustrative example — not advice
Worked example — the discount calculator as it loads, using the default figures below.
- 01Enter list price: $120.
- 02Enter discount: 20%.
- 03Enter unit cost: $48.
- 04Read the discounted price from the results panel: $96.00.
Discounted price: $96.00. Customer saves: $24.00. Margin after discount: 50%. Extra volume to hold profit: 50%.
These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.
Important considerations
- Frequent discounting trains customers to wait for the sale.
- A 20% discount on a 40% margin needs a 100% volume increase to break even.
Related calculators
- Markup CalculatorSelling price from cost and target markup.
- Profit Margin CalculatorGross, operating and net margin from your numbers.
- Sales Tax CalculatorAdd or strip sales tax from a price.
- Break-Even CalculatorUnits and revenue needed to break even.
- Business Loan CalculatorRepayments and total cost on a business term loan.
- Business Loan Payment CalculatorBusiness borrowing repayments and total cost.
Terms used here
Frequently asked questions
Why do small discounts hurt so much?
The discount comes entirely out of profit, not revenue, so the percentage effect on margin is much larger.
Disclaimer
Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.
Last reviewed 2026-08-01