# Quantity discount calculator

> Free quantity discount calculator. Compare profit on a multi-unit bundle with a single sale and see how many buyers must be upgrades for the tier to pay off.

Free, no sign-up, runs in the browser: https://analify-ai.scalyax.ai/tools/quantity-discount-calculator

Check whether a 'buy 3, save 15%' tier earns more than selling one unit, and how many tier buyers need to be real upgrades for it to pay off.

## What it calculates

A quantity tier trades price for volume. You give a discount on every unit, but you pay shipping and packing once per order, so a bigger order can earn more even at a lower price. Some tier buyers would have bought that many anyway, and you lose the discount on them. The calculator shows when the upgrades outweigh that loss.

## Formula

```
Tier total = Qty × price × (1 − discount)
Tier profit = Tier total − qty × cost − order cost − fee % × tier total
Single profit = Price − cost − order cost − fee % × price
Pays off when upgraded share ≥ loss ÷ (gain + loss)
```

## Worked example

Inputs:
- Unit price: USD 40
- Unit cost: USD 14
- Shipping and packing per order: USD 8
- Payment fee: 2.9%
- Tier quantity: 3
- Tier discount: 15%

Results:
- Profit per tier order: USD 49.04
- Profit per single-unit order: USD 16.84
- Gain versus a single unit: USD 32.20
- Customer pays per unit: USD 34
- Pays off if this share of tier buyers are upgrades: 35.2%

## What changes the result

Tier discount at five values; every other input as in the example.

| Tier discount | Profit per tier order | Gain versus a single unit |
| --- | --- | --- |
| 7.5% | USD 57.78 | USD 40.94 |
| 11.3% | USD 53.35 | USD 36.51 |
| 15% (example) | USD 49.04 | USD 32.20 |
| 18.8% | USD 44.61 | USD 27.77 |
| 22.5% | USD 40.30 | USD 23.46 |

## How to read the result

If gain versus a single unit is negative, the tier loses money on every order.
The pays-off share is the minimum share of tier buyers who would otherwise have bought only one unit.

## Questions

**Are quantity discounts profitable?**
They are when shipping and packing per order are a large cost, because a bigger order pays them once. Check gain versus a single unit.

**How big should a bundle discount be?**
Small enough that tier profit stays above single-unit profit. Try different discounts in the calculator.

**What does the pays-off share mean?**
The tier only helps if at least this share of its buyers would otherwise have bought one unit. The rest were going to buy that many anyway.

**Do you store what I enter?**
No. The calculation runs in your browser and nothing is sent to Analify.

## Use your real numbers

Analify reads orders, units per order and discount codes from Shopify, so you can see how many customers actually take each tier. Analify reads 3 of these 6 inputs live. Try the calculator: https://analify-ai.scalyax.ai/tools/quantity-discount-calculator

More free ecommerce calculators: https://analify-ai.scalyax.ai/tools