Discount impact calculator
Before you run a sale, see how many extra orders the discount needs just to earn the same profit, and what happens at the lift you expect.
Example numbers. Replace them with yours.
- Extra orders needed to break even
- 46.2%
- Profit change
- -USD 2,100
- Profit at full price
- USD 19,000
- Profit with the discount
- USD 16,900
- Discount cost per extra order
- USD 52
What it calculates
A discount comes straight out of margin, so each order earns less. To keep the same profit you need more orders, and the lower your margin, the more you need. A 20% discount on a 40% margin halves profit per order, so it needs twice the orders to break even.
How to read the result
If your expected lift is below the orders needed, the sale loses profit even if revenue goes up. If the discount is as large as your margin, no lift can save it. Discount cost per extra order works like a CPA. Compare it with what your ads cost per order.
Learn the metric:Gross marginAOV
The formula
Margin m = (Price − Cost) ÷ Price Orders needed = d ÷ (m − d) Profit at full price = (Price − Cost) × Orders Profit with discount = (Price × (1 − d) − Cost) × Orders × (1 + lift) Discount cost per extra order = Discount given ÷ extra orders
Worked example
Example inputs
- Price
- USD 60
- Product cost
- USD 22
- Discount
- 20%
- Orders without the discount
- 500
- Expected order lift
- 30%
Results
- Extra orders needed to break even
- 46.2%
- Profit change
- -USD 2,100
- Profit at full price
- USD 19,000
- Profit with the discount
- USD 16,900
- Discount cost per extra order
- USD 52
What changes the result
Discount at five values. Every other input stays as in the worked example; the highlighted row is the example.
| Discount | Extra orders needed to break even | Profit change |
|---|---|---|
| 10% | 18.8% | USD 1,800 |
| 15% | 31% | -USD 150 |
| 20% | 46.2% | -USD 2,100 |
| 25% | 65.2% | -USD 4,050 |
| 30% | 90% | -USD 6,000 |
Use your real numbers
Analify reads prices, product costs and discounted orders from Shopify, so you can see what past discounts did to orders and Blended Profit.
Analify already reads 3 of these 5 inputs live, from Shopify
Start freeQuestions
How many more sales do I need after a discount?
Divide the discount by (margin − discount). At a 50% margin, a 20% discount needs 20 ÷ 30 = 67% more orders to keep the same profit.
When does a discount lose money?
When the extra orders it brings are fewer than the orders needed to break even, or when the discount is as large as your margin.
Is a percentage discount or a fixed amount better?
Compare both with this calculator: turn the fixed amount into a percentage of the price and check the orders each one needs.
Do you store what I enter?
No. The calculation runs in your browser and nothing is sent to Analify.
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